Bitcoin is a type of cryptocurrency, which is a currency that exists only in digital form and operates without government or banking oversight. By comparison, the U.S. dollar, the EU euro, the Canadian dollar, and other national currencies have paper versions and are issued by their respective governments. Bitcoin relies on a public digital ledger that validates and records transactions and verifies bitcoin ownership. This ledger is called the blockchain, and it is globally distributed — that is, decentralized — across a broad, worldwide network of servers. Decentralization is a fundamental aspect of cryptocurrencies. Decentralization facilitates peer-to-peer payments with no banking intermediary, enhanced security, and defends against manipulation attempts.

Unlike credit card networks like Visa and payment processors like PayPal, Bitcoin is not owned by an individual or company. Bitcoins price is the world’s first completely open payment network, which anyone with an internet connection can participate in. Bitcoin was designed to be used on the internet, and doesn’t depend on banks or private companies to process transactions. One of the most important elements of Bitcoin is the blockchain, which tracks who owns what, similar to how a bank tracks assets. What sets the Bitcoin blockchain apart from a bank's ledger is that it is decentralized, meaning anyone can view i,t and no single entity controls it.