How bitcoin works
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If Craig Wright is who he says he is, the Australian entrepreneur is the creator of bitcoin previously known only by the pseudonym Satoshi Nakamoto -- who is supposedly worth about 1 million bitcoins, or some $450 million.
But how exactly do you use the digital currency? Take a look at how bitcoins work for transactions.
Virtual wallet
Download a “virtual wallet” for mobile or desktop from bitcoin.org. The wallet will contain your bitcoin funds, transactions and security keys.
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Get some bitcoins
You buy bitcoins through currency exchanges such as Bitstamp. Bitcoins are stored in your virtual wallets.
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Make transactions
To pay someone with bitcoin, have the payee send you a bitcoin address -- a long, unique string of letters and numbers connected to their wallet. Most wallets automatically create a new address for each transaction.
To be paid in bitcoin, send one of your bitcoin addresses to the payer.
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Security
All bitcoin transactions are saved and can be viewed publicly through a technology called blockchain, which functions like a ledger. This is a safeguard against fraud and double-spending. The balance and transactions of all bitcoin address are visible to anyone.
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Sources: bitcoin.org, McClatchy Tribune, Times reporting
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