Bitcoin: the ledger behind the headline

A shared transaction record

Bitcoin uses a public ledger to record confirmed transactions. Rather than treating a wallet balance as an entry held by one company, the network checks transactions against common rules. This is the starting point for understanding how the system works.

What a wallet does

A wallet helps a person interact with the network and authorize transactions using cryptographic keys. A displayed balance is an interface to information derived from the ledger. It should not be confused with a guarantee provided by a bank.

Questions for further reading

When reading about a Bitcoin service, distinguish the network from the company offering access to it. Ask who controls the keys and which terms apply. A claim about an intermediary does not automatically describe the underlying protocol.

Source & further reading

Bitcoin.org — How Bitcoin works . Consult the original documentation for additional detail. Source checked November 12, 2026.