How Bitcoin Works

An in-depth look at the technical side of Bitcoin

9 minute read

Bitcoin is an incredibly well thought out system, but understanding it all can feel overwhelming at first. This post covers what’s going on under the hood every step of the way, from creating a wallet to sending bitcoins. Creating a Wallet When you create a wallet, a new Bitcoin address and key pair are created automatically for you. Every Bitcoin wallet has one or more Bitcoin addresses associated with it, and every address has a set of cryptographic keys that allow a user to create transactions related to that address.