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Bitcoin facilitates a new form of the worldwide payment system and forms an entirety of digital money that works through different nodes distributed globally. No central authority, middlemen or legal can enforce in the network of Bitcoin i.e it is a decentralized payment system in the network and operates on a peer-to-peer technology. If defined from a user point of view, it forms as cash money over the internet and runs as triple entry bookkeeping system.

It can also be viewed as a computer program or mobile application that has a digital wallet or a Bitcoin wallet to facilitate Bitcoin transactions i.e sending and receiving bitcoins between the users and forming a basic work system of Bitcoin. The Bitcoin network has a “Blockchain” which is a distributed digital ledger that records all the transactions made through the network. Every Bitcoin transaction is recorded in the public ledger and the cryptocurrency technique is used to maintain the legitimacy of the transaction and to verify its validity as well. The encryption technique guards the legitimacy of every single transaction by providing digital signatures to its complementary sending addresses and permitting the users to have a control over sending Bitcoins from their own Bitcoin addresses. Moreover, by harnessing computer network and specialized hardware, any user can process Bitcoin transaction and earn Bitcoins as a reward which is known as “Mining.” And hence mining also adds value to the coins.

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