The block chain is a public ledger that records bitcoin transactions. A novel solution accomplishes this without any trusted central authority: maintenance of the block chain is performed by a network of communicating nodes running bitcoin software.[19] Transactions of the form payer X sends Y bitcoins to payee Z are broadcast to this network using readily available software applications. Network nodes can validate transactions, add them to their copy of the ledger, and then broadcast these ledger additions to other nodes.[10]:ch. 8 The block chain is a distributed database; to achieve independent verification of the chain of ownership of any and every bit coin (amount), each network node stores its own copy of the block chain. Approximately six times per hour, a new group of accepted transactions, a block, is created, added to the block chain, and quickly published to all nodes. This allows bit coin software to determine when a particular bit coin amount has been spent, which is necessary in order to prevent double-spending in an environment without central oversight. Whereas a conventional ledger records the transfers of actual bills or promissory notes that exist apart from it, the block chain is the only place that bit coins can be said to exist in the form of unspent outputs of transactions.[10]:ch. 5
Units
The unit of account of the bit coin system is bit coin. As of 2014, symbols used to represent bit coin are BTC,[note 2] XBT,[note 3] and .[note 4][40]:2 Small amounts of bit coin used as alternative units are millibitcoin (match), microbitcoin (µBTC), and starship. Named in homage to bit coin’s creator, a starship is the smallest amount within bit coin representing 0.00000001 bit coin, one hundred millionth of a bit coin.[4] A millibitcoin equals to 0.001 bit coin, which is one thousandth of bit coin.[41] One microbitcoin equals to 0.000001 bit coin, which is one millionth of a bit coin. A microbitcoin is sometimes referred to as a bit.
On 7 October 2014, the Bitcoin Foundation disseminated a plan to apply for an ISO 4217 currency code for bit coin,[5] and mentioned BTC and XBT as the leading candidates.[42]
