Bitcoin Basics

Overview

Bitcoin is a decentralized digital currency that operates on a peer-to-peer network, maintained by miners who validate transactions and secure the network. Understanding the foundational elements of Bitcoin is crucial for users, especially in relation to transactions involving Ordinals.

Key Concepts

Blockchain and Mining

• Bitcoin operates on a decentralized ledger known as the blockchain.
• Miners compete to solve cryptographic puzzles. The first miner to solve the puzzle adds a new block containing recent transactions to the blockchain.
• Miners are rewarded with newly created bitcoin and transaction fees paid by users of the network.

Confirmations and Fees

Bitcoin transactions confirm when miners include them in a block. Bitcoin produces a block approximately every ten minutes on average, but confirmation times vary. A transaction's fee rate and current network demand affect how quickly miners include it.

• Learn more about transaction time and fees.
• Speed up an eligible pending transaction with CPFP.