How does Bitcoin2x work?

Bitcoin2x might seem a bit complicated at first, but don’t fret. It’s quite simple to understand at a broad level.

Bitcoin2x basics

Getting started with Bitcoin2x doesn’t require having an in-depth understanding of how and why it works. Part of the reason so many people have started using Bitcoin2x is because of its ease of use. Once you have the Bitcoin2x on your wallet, you will also have your very own public Bitcoin2x address. You can send this public address to friends and customers so that they can send you payments, similarly to how they would have to give you their public address so you can pay them.


Bitcoin2x

Balances

One of the key components of Bitcoin2x is the shared public ledger referred to as the blockchain. This is where the entire Bitcoin2x network lives. Every confirmed reaction is in the blockchain, and Bitcoin2x wallets utilize the blockchain to calculate your spendable balance. The blockchain is also bolstered by cryptography.

Private keys for transactions

Every transfer of value between Bitcoin2x addresses is included in the blockchain. Wallets keep private keys (or seeds) to sign and verify transactions. This is how transactions are legitimized as having come from the actual owner of the Bitcoin2x amount. A signature also stops the transaction from being changed by anyone after it has been conducted. The transactions are pushed to the network and are confirmed through a process called “mining”.

Mining - transaction confirmation

The way the Bitcoin2x blockchain works is by a distributed consensus system called “mining”. Mining essentially enforces the blockchain and keeps the network neutral. The mining process consists of different computers all over the world agreeing that every single transaction is valid. In order to be confirmed, the transactions are packed into blocks that fit the cryptographic rules, and are then verified. Since they are built on top of eachother, blocks cannot be modified. Modifying a single block would mean invalidating all the following blocks. On the other side of the mining process, there are miners that essentially compete to verify the transaction, and they are compensated in Bitcoin2x. No single person can control what each portion of the blockchain contains, nor can they replace certain parts of the blockchain at their own free will.

Next Steps for Education

This is only a very short and concise summary of the system. If you want to get into the details, you can read the original paper that describes the system's design, read the developer documentation, and explore the Bitcoin2x wiki.