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Understanding bitcoin transactions

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jumaane williams
jumaane williams

Understanding Bitcoin Transactions and how they work. Difference between a Public Key and a Private Key. How the Blockchain was created.

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Understanding BitcoinUnderstanding Bitcoin TransactionsTransactions
ï‚ž Bitcoins are exchanged and transferred digitally through a computer generated code. ï‚ž To ensure that these transactions are completed safely and securely users use keys.
ï‚ž Two keys are always required for any transaction: ï‚ž 1. Public Key ï‚ž 2. Private Key
ï‚ž The public key is the one that is used for the actual transfer of the Bitcoin. ï‚ž This first verification step prevents anyone from trying to send the same transaction to two different people at the same time.
ï‚ž The end user then uses their private key to unlock the transaction, once it has been verified. ï‚ž The Bitcoin then gets deposited into their Wallet. A wallet is simply an online bank account.
ï‚ž Because the system uses two keys all activity in the network can be easily traced. ï‚ž The process of verification often occurs multiple times before the receiver deposits the Bitcoin.
How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž It takes several verifications for each transaction to proceed. At this time the current number of verifications required is six. ï‚ž Before a transaction enters into the Blockchain a new block is formed first.
How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž To create a block a process known as hash creation has to occur. ï‚ž Think of this as small nodes that are attached to a block each time it is verified. ï‚ž The original block gets a little longer.
How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž As this is all done on via a mathematical software program zeros are added at the beginning of the block. ï‚ž As each new block, verification, is completed more zeros are added on. ï‚ž The largest block is always taken to be the authenticated block.
How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž Once this verification process has occurred six times this block enters into the BlockChain. ï‚ž As it enters a timestamp is associated with it.
How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž No records are ever removed from the Blockchain and it will continue to grow in size
Discover MoreDiscover More ï‚ž Boutthatbitcoin.com

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Understanding bitcoin transactions

  • 2. ï‚ž Bitcoins are exchanged and transferred digitally through a computer generated code. ï‚ž To ensure that these transactions are completed safely and securely users use keys.
  • 3. ï‚ž Two keys are always required for any transaction: ï‚ž 1. Public Key ï‚ž 2. Private Key
  • 4. ï‚ž The public key is the one that is used for the actual transfer of the Bitcoin. ï‚ž This first verification step prevents anyone from trying to send the same transaction to two different people at the same time.
  • 5. ï‚ž The end user then uses their private key to unlock the transaction, once it has been verified. ï‚ž The Bitcoin then gets deposited into their Wallet. A wallet is simply an online bank account.
  • 6. ï‚ž Because the system uses two keys all activity in the network can be easily traced. ï‚ž The process of verification often occurs multiple times before the receiver deposits the Bitcoin.
  • 7. How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž It takes several verifications for each transaction to proceed. At this time the current number of verifications required is six. ï‚ž Before a transaction enters into the Blockchain a new block is formed first.
  • 8. How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž To create a block a process known as hash creation has to occur. ï‚ž Think of this as small nodes that are attached to a block each time it is verified. ï‚ž The original block gets a little longer.
  • 9. How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž As this is all done on via a mathematical software program zeros are added at the beginning of the block. ï‚ž As each new block, verification, is completed more zeros are added on. ï‚ž The largest block is always taken to be the authenticated block.
  • 10. How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž Once this verification process has occurred six times this block enters into the BlockChain. ï‚ž As it enters a timestamp is associated with it.
  • 11. How the Blockchain isHow the Blockchain is CreatedCreated ï‚ž No records are ever removed from the Blockchain and it will continue to grow in size
  • 12. Discover MoreDiscover More ï‚ž Boutthatbitcoin.com