How Does Bitcoin Work?

A simplified explanation of Bitcoin even Children can understand!

Whenever I’m trying to explain a tech concept to someone, I try to tailor my explanation to something the person is familiar with. When I’m talking to my Sister, I relate it to food, when I talk to my kids I relate it to Pokemon, it just helps people understand things a little easier.

When I came across Square’s new site promoting their Cash app that had an illustrated children’s book style explanation of Bitcoin I knew I had to write about it. The site is a great way for kids AND adults to understand what Bitcoin is and how it works.

The illustrations first talk to you about the creator of Bitcoin, and his mission to make a new kind of currency. It goes into how each Bitcoin is mined through extremely complex math, and that each Bitcoin is unique with a limited number available.

No explanation of Bitcoin is complete without mentioning how the transactions for the Bitcoin take place, which is through a database platform called Blockchain. The Blockchain database isn’t stored in any single location and is hosted by millions of computers simultaneously. According to AWS, Blockchain is the application of a technology in which a list of records (like a person’s name), or blocks, are cryptographically linked to one another via timestamps and other attributes. Blockchains are resistant to data modification since the alteration of one block requires consensus across the recorded chain or ledger.

Although Blockchain was specifically created to handle cryptocurrency transactions, the database is starting to gain popularity in many types of applications. Since the system is built to check itself against other data, the application of the technology in the financial world makes the most sense. We are also starting to see the technology in use in the health field and in supply chain management.

Definitely, take a look at the story if you are still confused about Bitcoin. It’s an extremely high level “story” about Bitcoin, what it is, and how to obtain some.


This post may contain affiliate links, which means I receive compensation if you make a purchase using the links.



About the author

Sarah Werle Kimmel

Sarah Werle Kimmel is a digital parenting coach and family tech expert. She has spent the last 20 years of her career working as a Microsoft Certified IT Manager supporting over 100 small businesses. During that time she started Family Tech LLC to help families understand and manage the technology in their home. She has regularly appeared as a family tech expert on local NBC, CBS, ABC and FOX news affiliates, BYUtv and Studio 5, and has been invited all over the world from tech companies like Lenovo, Verizon, Microsoft, Dell, and Samsung. Find out more on her website

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