How do bitcoin transactions work?
You would have gone through so many articles on the internet and known so much about bitcoins. In this article, we are going to know about the working of a bitcoin transaction, this is something that you have to know when you own or thinking to own bitcoins. All you may know is you can send and receive them using a bitcoin wallet.
But what happening inside is still a mystery to all people who are using it and you have to know this so that you will be well worst in every concept of this digital money. When you are transacting your bitcoins to a receiver, the transaction gets included in a block of previously made transactions. Since there will be more blocks attached to each other, they are termed as blockchain.
You may think that your bitcoin wallet is something that holds your bitcoin price but it does not hold them but your bitcoin address. So that it keeps track of all the transactions that you made using bitcoins. Your address is also referred to as public key which you have to share with others to transact digital money.
Each public key has a respective private key and this should be kept secret so that you can save your bitcoins. This is the crucial part when you transact bitcoins, it is signed with your private key. With this digital signature and public key, you can transact this digital money to any public address.
Once the validation about your bitcoins and the private key is completed, the transaction will start to proceed. After completion of the transaction, it will be added as a block to other blocks that were already completed. The best part of a bitcoin transaction is the program will validate the transaction, without knowing the private key.
This is the process of working of bitcoin transaction and now you can decide to own your bitcoins.