– User installs Bitcoin Wallet in PC or Smartphones.
– User will get First Bitcoin Address (Later on, can be created more).
– These address can be shared with friends or any required circle of your own to send money and vice versa.
|img src – https://goo.gl/UWcVSc|
Balances – block chain
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.
“via : https://bitcoin.org/en/how-it-works”