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What is bitcoin mining eli5

The bitcoin network is a peer-to-peer payment network that operates on what is bitcoin mining eli5 cryptographic protocol. The network requires minimal structure to share transactions. An ad hoc decentralized network of volunteers is sufficient. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will.

Upon reconnection, a node downloads and verifies new blocks from other nodes to complete its local copy of the blockchain. An actual bitcoin transaction including the fee from a webbased cryptocurrency exchange to a hardware wallet. A bitcoin is defined by a sequence of digitally signed transactions that began with the bitcoin’s creation, as a block reward. The owner of a bitcoin transfers it by digitally signing it over to the next owner using a bitcoin transaction, much like endorsing a traditional bank check.