How do Bitcoin Transactions Work: An In-depth Guide

3년 전

A week or so ago I had written a post titled “What is Bitcoin(BTC): A beginner’s guide.” I think that it helped you guys to understand something if not a lot about bitcoin. Alright, moving forward as many if not all of you may be aware that bitcoin is a peer to peer based independent blockchain platform that allows you to send and receive money globally without any middleman business. But then many people may not be aware as to how the transactions on bitcoins network happen. Therefore, with this post, I intend to educate a lot of people as to how the transactions on bitcoins system happen.

So what I’m going to do is segregate this post into simple, intermediate and difficult levels of difficulty.

Ledger Nano S

On that note, let’s begin the simple section of this post:

Simple Part

Let’s assume there are 2 people Y and Z. Now if Y wants to send some amount of bitcoin to Z then he/she would need to a) have the required amount of BTC in his/her wallet (obviously), b) incur a transaction fee which is mostly in the range of 15-20$ but may be more or less depending on several other factors and finally c). Either Y or Z must not have sent that particular bitcoin (because every bitcoin is unique regarding its hash) to any other person.

After this transaction is initiated by either Y or Z, then it gets published on the blockchain. Then several people known as miners solve a bunch of mathematical calculations and try to verify the transaction information between the parties involved. If they don’t find anything fishy concerning the transaction being made, then they give it the all clear. After this happens, the verified transaction gets included within a block and is linked to the previous block and becomes a part of the blockchain ( hence the name ).

Apart from this, the fascinating feature would be that no one can tamper, i.e., meddle or fiddle with the transactions that happen on the blockchain because that would mean that all the previous blocks within the platform would have to be re-written.

So, in a nutshell, that was the simple version of how transactions happen on bitcoins network.

Medium version

Read The Complete Post: How do Bitcoin Transactions Work: An In-depth Guide


This post also published on our Official​ Site

Vote for @JatinHota (Founder of CoinGyan) as a witness


Click this link and input your active private key when asked to vote


Alternatively, You can vote for me here: https://steemit.com/~witnesses

Go to the witness page https://steemit.com/~witnesses

Scroll down and Type "jatinhota" into the box (without the quotes and @), and then click the vote button:

Vote Jatin Hota Steem Witness

or Set me As Proxy

Vote Jatin Hota Steem Witness

If I am on the top 50 witnesses, you'll be able to vote for @JATINHOTA simple my clicking upvote symbol the beside jatinhota.



Have An Idea? Want to Chat with me or Need Support? You can Directly Chat with him in Steemit.chat or Discord #IndiaUnited

IndiaUnited Discord

Thank you for reading it.

jatinhota.png

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
STEEMKR.COM IS SPONSORED BY
ADVERTISEMENT
Sort Order:  trending

Very nice, Will be looking forward to your posts. Up-voted: hope you will visit my blog