How does Bitcoin work?
You can get started with Bitcoin without understanding the technical details. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.
Balances – block chain
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.
Transactions – private keys
A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.
Processing – mining
Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.
Here is a list of Bitcoin traders and Exchanges
These have not been checked, just researched and compiled. I will remove any that are found to be unfavorable.
Based in NYC. Local and Worldwide service
We made Coin Cafe to be the fastest and easiest way to get Bitcoin, whether you’re in NYC or anywhere else in the world.
That was our biggest challenge when we got into Bitcoin and now we want to make it easy for everyone else.
Got a question? Just call us 🙂 We aim to please and our service is unique in the industry.
Thanks! -Mike & Steve Coin Cafe, Inc.
Based in sunny Santa Monica, CA expresscoin is a financial technology platform focused on helping people get access to digital currency.
We are the global bridge to digital currencies from any point of service from banks, payment gateways, ATM networks and more.
In 2013, we bootstrapped our company from a $200K seed round of family and friends and developed a system that has transacted over $15M worth of transactions.
Our team of developers,designers, and marketers are passionate and dedicated to make Bitcoin and other digital currencies easy, safe, and convenient.
Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.
Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.
Bitcoin is a protocol. Just like e-mail, bitcoin operates with a set of rules. Just like you can set up an e-mail address, then send and recieve messages and pictures. You set up a wallet, then send and receive bitcoin.
Ways to Purchase Bitcoin
Here is a link to exchanges: http://howtobuybitcoins.info/us.html
I am working on a referral list based on feedback from all of you. Let me know your experiences with the various traders and exchanges.
Local Bitcoins – This is a site where you can bitcoins from people locally with cash, by moneygram, western union, bank deposits and many other ways. When you place an order, copy and save the bitcoin wallet address and amount that you see on the confirmation page.