Understanding Bitcoin

Lesson 1 of 3

What Bitcoin is

Bitcoin is a digital currency that exists on a decentralized network — no single company, bank, or government controls it. Transactions are recorded on a public, shared ledger called a blockchain, maintained by a global network of computers rather than a central authority. It was created as an alternative to relying on banks or governments to verify and settle transactions.

• •Bitcoin is a decentralized digital currency with no central controlling authority.
• •Transactions are recorded on a public ledger called a blockchain.
• •It was designed as an alternative to bank- or government-mediated transactions.