Bitcoin is a decentralized network of digital currency without a central bank or another central authority.
The native currency of this network is called "bitcoin" (lower b) and can be transferred from user to user on a peer-to-peer network without any intermediaries.
Bitcoin transactions are irreversible, pseudonymous, fast and global, secure and permissionless. These transactions are recorded on a publicly-distributed ledger called "blockchain".
How does Bitcoin work?
1) Miners create bitcoin by using computing power to solve complex mathematical problems ("hashing"). During this mining process, transactions within the peer-to-peer network are verified.
2) Bitcoin exchanges serve as the on- and off-ramps where bitcoin is traded against fiat currency.
3) Network participants can create their own bitcoin addresses (wallets) that allows to participate in the network via sending and receiving bitcoin.
4) Cryptography secures the network, ensuring all balances and transactions are safe.