What is a Bitcoin transaction? (Topic)

Let's figure out how the Bitcoin cryptocurrency transaction mechanism works on the blockchain network. In particular, descriptions are given to such concepts as a block chain, verification of the legality of a payment, confirmation of a transaction.

This is a blockchain that includes a publicly accessible database of all transfers made to the bitcoin cryptocurrency. Simply put - the transfer of military-technical cooperation between users of the system.

Each part of the blockchain within the blockchain network stores information about completed transactions, as well as data about new transactions.

Blockchain as a List

The blockchain system can be represented as a linked list, in the work of which there is an inextricable relationship. Thus, each subsequent algorithm gives a link to the previous algorithm, in order to somehow influence or change the information in such an algorithm, you will have to iterate through the entire blockchain to the very beginning.

All data on cryptocurrency transactions are stored in virtual blocks, which contain the storage of all transactions.

The so-called history of the " circulation" of cryptocurrency is a set of blocks presented in the form of a chain.

The block contains a list of transactions and a header. Each header contains hash codes of transactions, the personal hash of the block, as well as the hash from the previous block. Information about the reward for mining a new block is indicated at the very beginning of the transaction list.

How does confirmation work?

Verification of the legality of a cryptocurrency transaction is carried out by validating transactions in the blockchain. It is presented in the form of a redistributed information base. The basic elements of the base are saved on the bitcoin network and on the computers of miners.

Approving a transaction is the process of connecting it to the directory of all transactions located in a block.

Updating accounts between the addressee of the payment and the payer after the completion of cryptocurrency transactions occurs after a certain period of time. Traditionally, in the software of ordinary users, a transaction is approved when six blocks are found, which serves as proof of its validity.

The miner performing this operation has the ability to reduce the number of checks. You should only go down when you have a small amount of bitcoins. The number of checks is reduced in order to simplify and speed up the transaction approval procedure.

And if there was no confirmation

If it was not possible to establish the authenticity of a cryptocurrency transaction, the cryptocurrency is automatically returned to the user's wallet.

The Topic of Article: What is a Bitcoin transaction?.
Author: Jake Pinkman