However, since Bitcoin is a digital currency with no central authority verifying transactions, the process for tracking your spending and maintaining accurate records is distributed across the network. On Proof of Work blockchains, mining establishes the chronological order of transactions, which is essential in ensuring that previous entries to the crypto open ledger cant be changed. If a transaction is to be successfully confirmed and included, it has to be packaged in a block that must comply with strict encryption rules. Those are verified and validated by the miners on the network and there is no involvement of any government authorities. This protects the neutrality of the Bitcoin network. On Uphold's WebsiteTerms Apply. Cryptoassets are highly volatile. Your capital is at risk.