Bitcoin Transaction

A Bitcoin Transaction is a blockchain transaction that involves bitcoins on the Bitcoin system.

• AKA: bitcoin Payment.
• Context:
  • It can (typically) be supported by a Bitcoin Mining Process.
  • It can range from being a Pending Bitcoin Transaction to being a Completed Bitcoin Transaction.
  • …
• Example(s):
  • https://blockchain.info/tx/5b39ae4ba33aca640a7c7af0c5f0dc672c1aa3e835811697c99dc6b31ad3fedd.
  • …
• Counter-Example(s):
  • an Ethereum Transaction.
• See: Bitcoin Blockchain, Bitcoin Ledger.

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References

2015

• http://www.economist.com/blogs/graphicdetail/2015/01/daily-chart-3
  1. ) Payers initiate a bitcoin payment using "wallet" software.
  2. ) This and other pending transactions are broadcast on the global bitcoin network.
  3. ) Once every ten minutes or so, "miners", specialised computers (or groups of computers) on this network, collect a few hundred transactions and combine them in a "block".
  4. ) In order to mine a block and validate the transaction, miners compete to solve a difficult mathematical equation (a "hash function"). The miner that solves the equation first further processes the block and broadcasts this "proof-of-work" to the bitcoin network.
  5. ) The other miners check the proof-of-work and the validity of the transactions. If they approve, the winning miner gets a reward of 25 newly minted bitcoin (about $6,900 at current prices), which is the incentive for miners to provide computing power. Adjusting the difficulty of the puzzle ensures that the supply of new bitcoins remains steady.
  6. ) The mined block is added to the "blockchain", a big, unbreakable ledger that lives on the bitcoin network and serves as a record of all transactions.
  7. ) The payee can use his wallet software to see whether the bitcoin have arrived.

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