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Michalis Kargakis 2014-08-20 14:54:29 +03:00
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ch02.asciidoc
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[[ch02_bitcoin_overview]]
== How Bitcoin Works
=== Transactions, Blocks, Mining and the Blockchain
=== Transactions, Blocks, Mining, and the Blockchain
The bitcoin system, unlike traditional banking and payment systems, is based on de-centralized trust. Instead of a central trusted authority, in bitcoin, trust is achieved as an emergent property from the interactions of different participants in the bitcoin system. In this chapter we will examine bitcoin from a high-level by tracking a single transaction through the bitcoin system and watch as it becomes "trusted" and accepted by the bitcoin mechanism of distributed consensus and is finally recorded on the blockchain, the distributed ledger of all transactions.