One of the main features of the system is complete decentralization: there is no central administrator or any of its analogues. A necessary and sufficient element of this payment system is the basic client program (has open source code). Client-based programs that are running on many computers are connected to each other in an ad hoc network, each node of which is equal and self-sufficient.
Every user of the system can generate an unlimited number of pairs Keys(The ECDSA algorithm with the SECP256K1 parameter). The private key size is 256 bits, and the public key corresponding to it is 512 bits.
Bitcoins can be passed on to anyone who reports a valid Bitcoin address or public key. To transfer bitcoins, the current owner creates a new transaction, which, in addition to specifying the number of Bitcoins to be transferred, contains the initiator-signed hash of the previous transaction by which bitcoins were received. The previous transaction becomes the "input" of the current transaction. You also specify the public key or the Bitcoin address of the new recipient ("Exit") (see schematic outline in the figure).