Bitcoin, as we know, is a form of cryptocurrency which basically is a form of online money. It is decentralized digital currency. It can be transferred from user to user. You can download a wallet and load bitcoins in it from the website.
A bitcoin wallet is a place where the information about the transactions using the bitcoins As bitcoins has to be always kept inside blocks, wallets only stores digital credentials. Bitcoin uses a public. Public-key cryptography is the system used in bitcoins, in which there are 2 keys, one public and one private. You can operate the bitcoin wallet with several nodes.
The pear to pear transactions is secured and verified using a computer. This is called bitcoin mining. Transactions here are payments between users on a network which is decentralized. It also includes adding the transaction data to the global public ledgers. Each transaction is made into groups which are called blocks. Bitcoin mining also includes securing all the blocks. It also blocks attempts to spend coins that are already spent. These are made very difficult so with an increasing number of blocks, the miners remain steady. Each block must contain a proof of work (PoW). The PoW is verified every single time block is received. Not only maintaining t and securing the transactions, but it also introduces bitcoins. The miners are paid a lot of transaction fees. These are called lock rewards. This way, they are encouraged to give security for transactions through mining.
In the last year, there were a lot of users using bitcoins and the miners found it very tough to handle in individually. They needed help to solve the blocks. This was the main reason for the introduction of Pool mining. This is basically when a small group of miners who together solve the block. It hence became easier to manage a larger number of blocks. The block reward was split within the group according to the contribution given by each person. There are also 2 different payment methods, Pay per share and pay per last N shares.
Bitcoins are decentralized. This means that they do not have central storage. The ledger is distributed. Anybody can become a miner. There are rewards issued for creating new blocks. Anybody can transact bitcoins. The system only checks if the transfer is legitimate. The value of bitcoin has been increasing constantly. 1 bitcoin equals Rs. 2,90,088