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How Does Bitcoin Work?

Bitcoin is built on a distributed digital record called a blockchain. As the name implies, blockchain is a linked body of data, made up of units called blocks that contain information about each and every transaction, including date and time, total value, buyer and seller, and a unique identifying code for each exchange. Entries are strung together in chronological order, creating a digital chain of blocks. ā€œOnce a block is added to the blockchain, it becomes accessible to anyone who wishes to view it, acting as a public ledger of cryptocurrency transactions,ā€ says Stacey Harris, consultant for Pelicoin, a network of cryptocurrency ATMs. Blockchain is decentralized, which means itā€™s not controlled by any one organization. ā€œItā€™s like a Google Doc that anyone can work on,ā€ says Buchi Okoro, CEO and co-founder of African cryptocurrency exchange Quidax. ā€œNobody owns it, but anyone who has a link can contribute to it. And as different people update it, your copy also gets updated.ā€

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