Bitcoin Removes Financial Intermediaries

Bitcoin Removes Financial Intermediaries

Here is a three-step graphic that shows how peer-to-peer transactions are accomplished programmatically on Bitcoin's decentralized network without the need of any intermediaries.

Step 1. Broadcast Transaction

Someone initiates a Bitcoin transfer from their wallet to another. This transaction is queued up to be validated by the miners securing the network.

Step 2. Network Verification

Bitcoin miners validate holdings and debit one address while crediting the other. Balancers are then recorded into the active block.

Step 3. Transactions Finalized

Block is confirmed and recorded across the distributed Bitcoin nodes. New balances are posted and the transaction is made immutable (irreversible).

Every transaction is handled programmatically through an open-source protocol.

  • Participants send and receive transactions
  • Miners validate each transaction
  • Nodes record transaction history

Easy peasy, lemon squeezy.

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