Instead of having a single centralized computer system to manage transactions like the traditional banking system, Bitcoins transaction system is operated by a collection of computers around the world.
Some of these computers (Known as “Mining Rigs” or “Nodes”) are owned by companies, and some are owned by normal people like you and me.
These computers manage the transfer of the currency from one wallet to another, keep records of the information on a public record (aka “The Ledger”) and double check each other’s work (known as “Validating the Ledger”)
This process is known as Bitcoin “Mining”.
Processing these transactions involves solving a series of complex mathematical equations, and validating the other nodes’ work, to ensure that a dishonest party cannot trick the system.
(This concept is known as “Decentralization”)
The miners are the driving force behind making this network (aka “the Blockchain”) run and keeping it secure.
Bitcoin miners are paid in Bitcoin, based on the amount of “work” their system provides to the blockchain. (I.e. The number of equations solved.)
It’s not necessary to understand all the technical details of Blockchain to buy, sell or purchase something with Bitcoin.
I don’t personally mine, nor do i know all of the ins and outs of the process; But if you do have detailed questions I could probably point you a source for your answers.
I hope this helps to start answering the questions many people are asking.
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