Bitcoin Basics
How Do Bitcoin Transactions Work?
A transaction is a transfer of Bitcoin value on the blockchain. Bitcoin transactions are irreversible once added to the blockchain.
What Are Public and Private Keys?
A private key is used to verify ownership and sign transactions in order to send bitcoin. A private key can derive a public key.
On-Chain vs. Off-Chain Bitcoin Transactions
Bitcoin uses a blockchain as a ledger to record all transactions. The blockchain is the most secure database in existence, but neither the fastest or cheapest way to transact bitcoin. Off-chain solutions, such as the Lightning Network, offer trade-offs to optimize for rapid, cheap payments.
Why Don't Altcoins Threaten Bitcoin?
The success of Bitcoin has generated many imitations and spin-offs. Some have genuinely attempted to recreate or extend Bitcoin’s innovation on money, while others have been nothing more than affinity scams, playing off of Bitcoin’s reputation to attract investors.
Can Bitcoin's Hard Cap of 21 Million Be Changed?
There will never be more than 21 million bitcoin. This rule, encoded in Bitcoin’s source code, cannot be changed thanks to Bitcoin’s decentralized nature. If it were possible, changing this hard cap would destroy the value proposition of Bitcoin.
How Many Satoshis Are in a Bitcoin?
One bitcoin is divisible into 100 million satoshis. Satoshis give Bitcoin great divisibility and flexibility.
What Can You Buy With Bitcoin?
Bitcoin can be used to purchase many goods and services, such as VPNs, giftcards, travel, luxury goods, and more. Several companies act as intermediaries to allow customers to spend bitcoin at merchants who do not yet accept bitcoin.