Example of using a cryptocurrency
Say you want to buy a bike from a friend using, for example, Bitcoin.
- You will log into your Bitcoin wallet with a private key.
- Instead of a bank recording the money that is subtracted from one side and added to another, your transaction is shared with everyone in the Bitcoin network.
- The networked computers add your transaction to a shared list of recent transactions (known as a block).
- Every 10 minutes, the newest block of transactions is chained to all the previous blocks. (known as a blockchain.)
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