the is this big ledger (blockchain) with all the addresses that have unspent bitcoins in them.
you can now take one of these unspent bitcoins and together with your (private) key (if it is the right one) and create a massage (transaction).
this massage you can now shout out to all that are interested (nods) and they pass it along to a miner.
he will know take some of this massages and pack them in a block. with this block he participates in a contest (mining the next block).
if he wins he gets a reward and also the fees that everybody paid to get in his block.
if he loses he simply starts a new block and so on.
if your massage is not in the winning block, then you will have to wait until someone puts you in his block and wins.
paying a proper fee is a good way to insure you are on board of the blocks of miners.
Topic: when spending bitcoins, how do transactions work? (Read 351 times)
Actually bitcoin is generated everytime sometime found a block which is reward that is coded in bitcoin codebase from start and the amount of bitcoin that will be generated and will be given to the successful miner is fixed from start and which keep getting halved over approx. 4 years of time.
Now the bitcoin when sended from one bitcoin address to another address, bitcoin from the sended address will be deducted and will be added to the receiver address and recorded in public bitcoin ledger over all nodes online so that anybody can check which address have how much bitcoin which can be sended and how much which can't be sended (unconfirmed bitcoins). In this process also the one sending bitcoin should include transaction fee which will also be taken by the miners who will confirm/process that transaction.
Now the bitcoin when sended from one bitcoin address to another address, bitcoin from the sended address will be deducted and will be added to the receiver address and recorded in public bitcoin ledger over all nodes online so that anybody can check which address have how much bitcoin which can be sended and how much which can't be sended (unconfirmed bitcoins). In this process also the one sending bitcoin should include transaction fee which will also be taken by the miners who will confirm/process that transaction.
Bitcoin transactions are sent from and to electronic
bitcoin wallets, and are digitally signed for security.
Everyone on the network knows about a transaction,
and the history of a transaction can be traced back to
the point where the bitcoins were produced.
bitcoin wallets, and are digitally signed for security.
Everyone on the network knows about a transaction,
and the history of a transaction can be traced back to
the point where the bitcoins were produced.
Please explain me in brief about how bitcoin transaction take place and how minner get btc for processing each transaction.
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