Summary

This chapter started with an introduction to Bitcoin and explained how a transaction works from the user's point of view. Then, an introduction to transactions from a technical point of view was presented. After this, the public and private keys used in Bitcoin were discussed. In the next section, we introduced addresses and their different types, followed by a discussion on transactions and their types and usage.

Following on from this, we looked at blockchain, with a detailed explanation of how blockchain works and the various components included in the Bitcoin blockchain. In the last few sections of the chapter, mining processes and relevant concepts such as hardware systems, their limitations, and bitcoin rewards were introduced.

In the next chapter, we will examine concepts related to the Bitcoin network, its elements, and client software tools.