Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries like banks. It uses cryptography and a public ledger called the blockchain to secure and record transactions. Here\u2019s how it works: 1. A miner collects a group of unconfirmed transactions into a batch, known as a block. 2. The miner solves a complex mathematical puzzle to validate the transactions and add them to the blockchain. 3. Once verified, the transactions are broadcasted to the network, and the miner is rewarded with newly minted Bitcoins for their efforts. 4. The transaction is then recorded on the blockchain, creating a permanent record of the transfer.