A Brief Overview on Bitcoin’s Structure and Operation Mechanism

Abstract

Bitcoin has received much attention and discussion since its appearance. The main questions are: what is Bitcoin and how does it work? To continue answering the question, this article analyses the advantages and disadvantages of Bitcoin from its structure and operating mechanism. This approach shows some advantages, disadvantages, barriers and applicability of Bitcoin that come from technology, especially blockchain technology. Therefore, the paper shows that Bitcoin is not only a means of direct transactions freely across borders without any control, but Bitcoin is also a ledger that stores all kinds of secure data and at the same time has the ability to develop many other applications besides the means of trading Bitcoin cryptocurrencies.