How Bitcoin Works

Plain-English guides to transactions, UTXOs, fees, addresses, confirmations, and the mechanics behind Bitcoin payments.

How Bitcoin Wallets Work

A Bitcoin wallet generates and stores private keys, which authorize spending. Bitcoin itself exists as entries on the blockchain, not inside the wallet.

What is a Bitcoin Private Key?

A private key is a randomly generated 256-bit number from which every Bitcoin address it controls is mathematically derived.

What is Public Key Cryptography?

Public key cryptography lets Bitcoin prove ownership without revealing the private key. Learn how key pairs and digital signatures work.

What is a Bitcoin Address?

Bitcoin addresses are derived from public keys. Learn what address formats mean, how generation works, and why address reuse reduces privacy.

What Are Bitcoin Hash Functions?

Learn what hash functions are, why they are one-way, and how Bitcoin uses them across address generation, transaction IDs, and proof of work.

What is a Bitcoin Seed Phrase?

A seed phrase is 12 or 24 words that generates every key in a Bitcoin wallet. Learn how it works and why it is the only backup that matters.

HD Wallets and Bitcoin Derivation Paths

HD wallets derive every key from one seed. Learn how derivation paths work and why the path matters when restoring or recovering a wallet.