How are Bitcoin (BTC) transactions verified?

Bitcoin transactions are verified by a network of computers called miners. Miners use their computers to solve complex mathematical problems in order to verify transactions and add them to the blockchain, which is a public ledger of all Bitcoin transactions.

When a miner successfully verifies a transaction, they are rewarded with Bitcoin. This process is called mining.

The blockchain is a distributed ledger, which means that it is stored on a network of computers all over the world. This makes it very difficult to tamper with the blockchain, as any changes would need to be made to all of the computers on the network.

Bitcoin transactions are verified by the following steps:

  1. A user sends a Bitcoin transaction to another user.
  2. The transaction is broadcast to the network of miners.
  3. Miners race to solve a complex mathematical problem.
  4. The first miner to solve the problem adds the transaction to the blockchain.
  5. The other miners then verify the transaction.
  6. The transaction is considered to be verified and is added to the blockchain.

The verification process is secure because it is based on cryptography. Cryptography is the use of mathematical algorithms to encrypt and decrypt data. In Bitcoin, cryptography is used to create a unique identifier for each transaction. This identifier is called a hash.

The hash of a transaction is used to verify that the transaction has not been tampered with. If the hash of a transaction is changed, then the transaction will be rejected by the network.

The verification process is also secure because it is decentralized. The blockchain is not stored in any one central location. Instead, it is stored on a network of computers all over the world. This makes it very difficult to hack or manipulate the blockchain.

Overall, the verification process for Bitcoin transactions is secure and reliable. It is based on cryptography and it is decentralized. This makes Bitcoin a very secure and reliable form of currency.