Cryptocurrency Q&A
Does bitcoin track account balances?
Does bitcoin track account balances?
CharmedWhisper
Sat Jul 06 2024
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6 answers
1672
Could you elaborate on whether Bitcoin, as a decentralized digital currency, actually tracks individual account balances? In traditional financial systems, banks and institutions keep records of customer account balances, but with Bitcoin's peer-to-peer network and its blockchain technology, is there a central repository or database that tracks each user's Bitcoin holdings? Do Bitcoin transactions update a ledger with balances, or is the balance derived from the history of transactions on the blockchain? Clarifying this point would help me understand the nuances of Bitcoin's accounting and transaction verification process.
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6 answers
CryptoElite
Mon Jul 08 2024
Bitcoin operates in a fundamentally different manner compared to traditional accounting systems.
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HanbokGlamour
Mon Jul 08 2024
Unlike traditional banking, where account balances are tracked and maintained, Bitcoin maintains a ledger of transactions.
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charlotte_clark_doctor
Mon Jul 08 2024
This ledger records the origin of each BTC and the destination address it is sent to, forming a chain of transactions.
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Daniele
Mon Jul 08 2024
As a result, individual Bitcoin addresses do not technically possess a static balance.
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WindRider
Sun Jul 07 2024
Instead, a calculated balance is derived by aggregating all transactions received at a particular address.
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