Bitcoin Fundamentals
How Bitcoin Really Works
Bitcoin Fundamentals offers a clear and rigorous introduction to the essential concepts needed to understand how Bitcoin works, without requiring prior technical knowledge.
Throughout the book, readers learn about transactions, UTXOs, keys and wallets, self-custody, full nodes, mining and proof of work, consensus rules, issuance and the halving, privacy, Lightning, and other layers related to Bitcoin.
The goal is to provide readers with a precise mental model that allows them to understand the system’s fundamentals and continue learning and verifying information independently. The book includes diagrams and infographics, chapter vocabulary, review questions, a glossary, answers, notes, sources, and additional resources.
Updated for 2026.