CommonLounge Archive

How Bitcoin Works

October 04, 2017

This comprehensive guide covers everything you need to know about how bitcoin works. No prerequisites are needed — you don’t need a university degree in computer science to understand these concepts. This guide will teach you the important points in a concise and easy-to-understand way.

Why do you need to learn how Bitcoin works before investing?

Investing in any asset just because its price is rising is not a good reason to invest your money. You should understand the underlying technology that you’re investing in, and the use cases it enables. This way you’re betting on the underlying, tangible technology rather than just trying to game the market.

Expected time to completion: 2 hours

We’ll cover the following concepts:

  • Bitcoin protocol
  • How decentralized ledgers function
  • Bitcoin Addresses, Blocks, and Transactions
  • How the blockchain is created
  • Mining & Proof-of-Work

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