Exploring the Bitcoin Network

Abstract

Bitcoin is a peer-to-peer (P2P) payment network running on a cryptographic protocol. Nodes of Bitcoin communicate to each other by broadcasting digitally signed messages to the network. Transactions are listed in a distributed, decentralized, public database referred to as the block, using a proof of work to reach consensus. The term “Bitcoin network” refers to a set of nodes running the P2P protocol. The structure of the Bitcoin network is minimal with a decentralized network of volunteers. This chapter presents the overall process of Bitcoin networks including transactions, digital signatures, relay networks, and Bitcoin script.