We know that Bitcoin is more of a computer software which runs and works on millions of interconnected and non-dependent computers all around the world. Therefore on the above assertion it can be concluded that Bitcoin is a technological innovation which has, apparently, many budding and impending uses and solicitations beyond simply money exchanges. This practically implies that there is no central server or government or the controlling authority to device regulations or rules for its implementations in the real transactional domains. So of you start using the bitcoin mining
via the software available to you; it shall create a bit-torrent like P-2-P network with the nodes which are present on the bitcoin mining site; while also creating the integrated as well as pooled catalogue of the peers present. It does so to ultimately track down the every transaction related to payment and receipt of this digital crypto currency.
Let us take one of the instance where there is a node which pays you using the Bitcoin. This payment shall be recorded in a shared and common database of the every computer present in that pool. After gathering the confirmation receipt of the transaction happened and then aggregating it with previous transaction a new lump of data is made. This new block of data is then appended to the existing series of blocks. Ultimately this gives rise to the new blockchain thereby creating more and more Blockchains. This way Bitcoin works!