The new year often starts with a clean slate, let's refresh our knowledge of the first cryptocurrency.
How does bitcoin work?
The idea behind BTC by its creator Satoshi Nakamoto was to build a payment system without intermediaries, where the payments take place directly between users (sender and receiver).
Each BTC transaction in the main network passes through 7 stages:
Selection of the recipient, transfer amount and commission.
The sender signs the transaction with a private key and sends it.
Nodes checks the eligibility of the transaction and sends it to the miners.
The miners add the transaction to the block.
The miners calculate the hash of the new block.
The new block is verified and added to the blockchain.
Nodes add the new block to their copy of the blockchain.
Knowing the algorithm gives the understanding that:
Nodes can only skip a transaction if you don't have the right amount in BTC.
Miners can delay processing a transaction, but are unable to cancel it.
