How Bitcoin Works
Follow the journey of a Bitcoin transaction from the moment you hit "send" to its permanent confirmation on the blockchain.
1. The User Creates a Transaction
You open your Bitcoin wallet and decide to send 0.05 BTC to a friend. Your wallet uses your private key to digitally sign the transaction, proving you own the funds without revealing the key itself.
1
The User Creates a Transaction
2
Broadcast to the Network
3
Miners Compete
4
The Block is Mined
5
Confirmation
Continue Learning
- Read What Is Bitcoin? The Complete Beginner Story for a full overview.
- Explore the Bitcoin Dictionary to look up terms like mining, mempool, and proof of work.
- See Bitcoin's history on the interactive Timeline.
- Try the Satoshi Converter to understand Bitcoin's smallest units.
Sponsored Offer
Start Trading on Coinbase
Buy, sell, and manage your cryptocurrency with ease on the most trusted exchange. Sign up today and get started.
Sign Up Now