Before you can make a payment with Bitcoin, you’ll need to set up a digital wallet to store your funds until you’re ready to use them. Once your wallet is up and running, you can use it to make payments by sending Bitcoin to the recipient’s digital address.
Unlike traditional payment methods, which require a third party such as a bank or credit card company to process the transaction, bitcoin transactions are processed directly between users. This peer-to-peer system eliminates the need for intermediaries, which can often slow down payments or add fees.
When you make a Bitcoin payment, a network of computers verifies the transaction. Once the transaction is confirmed, miners record it in a digital public ledger called a blockchain. Bitcoin transactions are grouped together in blocks, and each block is chained to the one before it, forming a permanent record of all transactions ever made. This record is public and transparent, meaning anyone can see it at any time. However, the identity of the people making the transactions is kept private.