Tin Can Robot

How Bitcoin Works

This is an old article but I also haven’t posted anything since the beginning of December so I think it’s allowed. I’ve had some problems finding a decent explaination of Bitcoin and this article by Michael Nielsen is pretty great:

It may seem surprising that Bitcoin’s basis is cryptography. Isn’t Bitcoin a currency, not a way of sending secret messages? In fact, the problems Bitcoin needs to solve are largely about securing transactions — making sure people can’t steal from one another, or impersonate one another, and so on. In the world of atoms we achieve security with devices such as locks, safes, signatures, and bank vaults. In the world of bits we achieve this kind of security with cryptography. And that’s why Bitcoin is at heart a cryptographic protocol.