How does bitcoin works

The Bitcoin network is a distributed system consisting of computers around the world. These computers are called “nodes”. Nodes ensure the healthy functioning of the network by downloading and updating the blockchain. They also verify and confirm transactions made on the network. Transactions made on the Bitcoin network are secured with digital signatures. A digital signature proves the identity of the person making the transaction and guarantees that the transaction is unalterable.
It also consists of two parts called private key and public key. The private key is used to sign the transaction and is kept secret. The public key is used to verify the transaction and is public. Transactions made on the Bitcoin network are added to blocks created at regular intervals. A block contains a group of transactions and carries the cryptographic digest of the block that preceded it. In this way, blocks are connected to each other and form the blockchain.

The blockchain is the public record of the Bitcoin network and is shared by all nodes. To add a new block to the blockchain, a competition takes place between nodes. We call this competition "mining", which we are all familiar with. Mining requires solving a mathematical puzzle to find the cryptographic hash of the block. This puzzle varies depending on the content of the block and its difficulty level can be adjusted. The first node to solve the puzzle announces the new block to the network and has it added to the blockchain. Additionally, it receives the fees for transactions in the new block and newly created Bitcoins as rewards.