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Welcome to the Bitcoin wiki. Here we aim to provide a correct and up-to date set of information on the Bitcoin network and its features and functionality.

Bitcoin is a peer to peer cash system created by Dr. Craig Wright under the pseudonym Satoshi Nakamoto and released as open-source software in 2009. It does not rely on a central server to process transactions or store funds. The leaderless structure of the network famously solves The Byzantine Generals Problem allowing disconnected entities to follow a common direction without centralised instruction.

The Bitcoin ledger is also formed as a DAG where each transaction is a node. Following this graph back can trace every the ownership of every coin in an unbroken chain of signatures back to the original Coinbase transactions. Transactions are pseudonymous on the network and

The ledger held on a distributed network of nodes who compete with each other to extend it in blocks. Block template are created when a node calculates the root of a Merkle tree containing all of the transactions they are attempting to mine. As new transactions arrive, they are added to the tree.

Nodes are operated by the Bitcoin mining enterprises who build the network. Bitcoin's economic incentives are structured such that for the nodes to be most profitable at building the ledger they must be as closely connected to other well performing nodes as possible. This ensures that they can tell any blocks they discover are accepted as fast as possible. This leads to miners forming a Small World Network which trends towards a Nearly Complete Graph where all miners are connected to all other miners. Miners gather transactions from users who connect in a layered network over the nodes at the core forming a Mandala Network. In this shell network, peers use Simplified Payment Verification to form a much less densely packed structure where information is exchanged in Payment Channels.

The miners use hash based Proof of Work to compete for the right to extend the ledger, and as a means to vote on Network.

As Bitcoin scales, the nodes who comprise the network will be variously compartmentalised into specialised hardware. These clustered systems will be distributed globally, each being placed in a location optimised for its task.

There are no limits in the Protocol. Any limits imposed are are put in place by miners who are incentivised to catch the largest profitable pools of transactions they can.

Bitcoins are the ledger's native unit of account. The base unit of exchange is Satoshis and 100,000,000 satoshis is referred to as one Bitcoin. Satoshis are held in script puzzles called Unspent Transaction Outputs or UTXOs. These are VOUT from Bitcoin Transactions which are held by miners in a quick access database called the UTXO set. During the spending process, UTXOs being used in a transaction are consumed and the solution to their puzzle script is recorded in the transaction.

Satoshis are issued by miners to themselves as a Block subsidy during the network establishment phase. As the network matures, the the subsidy dissipates forcing the miners to find alternate revenue streams. The payment allows miners to finance their operations through the payment of goods and services in Bitcoin, spreading them through the economy.

Valid transactions that are broadcast on The Bitcoin Network are committed to the Bitcoin public ledger by miners. Blocks are discovered just under every 10 minutes on average and held in a a Directed acyclic graph (DAG) structured as a Block Chain. Each block forms a node in the graph. This graph is consistent in structure and can be traced back to the Genesis block.

Transactions can be exchanged peer to peer, allowing them to be modified in payment channels. Once a transactions is sent to the network in a closed channel, global Consensus can be reached on the validity in less than 2 seconds.

All transactions are Payments in Bitcoin. Payments are written in a flexible Opcodes used in Bitcoin Script that is used to define transactions

Bitcoin operates on a fixed ruleset defining the active rules in the protocol. Rules are things such as the rate at which new bitcoins are issued, the mathematical rules outlining the target for the Difficulty algorithm and more. The protocol is agreed upon by the miners who control network operation. After the Genesis upgrade, miners will remove almost all limit based rules from the protocol enabling them to compete to offer better service to fee paying users by scaling their own capabilities.

Bitcoin has a rich history and has been attacked in many ways since its inception.

Bitcoin has a rich and diverse set of tools which are being added to all the time.