Bitcoin is a digital currency that is created and held electronically. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary.
For example, if Alice wants to send Bob some Bitcoin, she will use her wallet to send a message to the Bitcoin network. This message will include Alice’s public key, Bob’s public key, and the amount of Bitcoin that Alice wants to send. The message is then broadcasted to the network, and the miners on the network will verify the transaction. Once the transaction is verified, it is added to the blockchain and Alice’s wallet will be updated to reflect the change in her balance. Bob’s wallet will also be updated to reflect the change in his balance.