Rule #2: Take The Time To Learn How Bitcoin Works

Once you have discovered what Bitcoin really is and why it represents a unique opportunity for a fairer world in the future, I strongly advise you to go further.

You must take the time to learn how Bitcoin works.

For this, nothing beats reading the original white paper of the Bitcoin published in 2009 by Satoshi Nakamoto. Entitled “A Peer-to-Peer Electronic Cash System”, this document provides a complete overview of how the Bitcoin Blockchain works internally.

By reading this document, you will first understand exactly how transactions are linked to each other within blocks. You will then discover how the blocks are timestamped before being linked together in an immutable way.

The document then presents the basis of the consensus algorithm used by the Blockchain Bitcoin: the famous Proof-of-Work which is at the centre of the entire mining process.

The notion of reward for miners validating a block of transactions is also detailed and explained by the need to incentive people to participate in the Bitcoin network by making their computing power available to secure it.

The networking of the Bitcoin system is also precisely defined and makes it possible to understand why nodes consider the longest transaction chain as the one that is correct and should be extended.

Finally, Satoshi Nakamoto’s white paper discusses the need to make all transactions on the Bitcoin Blockchain public in order to do without a trusted third party as is the case in traditional payment systems.

Reading this white paper is essential because it will give you the technical basics to understand in detail how the Bitcoin Blockchain works while giving you all the key concepts to know and then do possible in-depth research on certain topics.