Bitcoin transaction

Bitcoin transaction

A transfer of Bitcoins from one party to another. The Bitcoin transaction is generated in a digital wallet and transmitted to the Bitcoin network where it is verified in a Bitcoin "node" and added to the blockchain-based ledger by a Bitcoin "miner." See Bitcoin wallet and Bitcoin mining.

UXTOs and Inputs
Because a person's Bitcoin holdings can span numerous blocks in the blockchain, the Bitcoin wallet scans the blockchain looking for every "unspent transaction output" (UXTO) that contributes to the user's Bitcoin balance. Either the wallet itself or a third-party service maintains a database of UXTOs for the Bitcoin holder. Each UXTO is indivisible and cannot be divided. Therefore, if the UXTO is larger than the amount to be paid, change is made in the form of a new UXTO back to the user, the same as making a cash payment of $6 with a $10 bill and receiving $4 in change.

To make a payment, the wallet creates one transaction input that points to a UXTO and unlocks it with a digital signature that proves ownership. The transaction is then broadcast to the Bitcoin network. See Bitcoin and blockchain.
References in periodicals archive ?
Comparing bitcoin's electricity consumption to that of its centralised alternatives- MasterCard and Visa card, Digiconomist, a blog site, estimates that each bitcoin transaction requires approximately 80,000 times more electricity than each Visa credit card transaction.
Shutterstock) DUBAI: UAE police have arrested a Pakistani man who conned an Indian national of $545,000 in a fraudulent bitcoin transaction, Gulf daily Khaleej Times reported.
This ledger records every bitcoin transaction ever made.
The electricity used in a single Bitcoin transaction, for instance, could power a house for a month.
The virtual currency relies on a network of computers that solve complex mathematical problems as part of a process that verifies and permanently records the details of every bitcoin transaction made.
Bitcoin transaction volume jumped more than 30 percent on Coinbase's GDAX exchange, while fees to approve and record the transactions on the blockchain surged to a record $55, according to Bit Info Charts.
From that point they would just monitor for any bitcoin transaction or any bitcoin wallets that you have, and try to steal the passwords," he said.
uses dedicated custom-built PCs, means that a single bitcoin transaction (294KWh
Central to the technology is a software protocol that creates a permanent record of every Bitcoin transaction.
com said he believes massive on-chain scaling is needed for bitcoin transaction fees to become small enough to enable micro-transactions.
Evidence of a bitcoin transaction is recorded on a digital public ledger called a blockchain; this can get very technical, depending on how many transactions there are and the number of addresses for each.
Every Bitcoin transaction can be viewed by the public, but the digital identity of the sender and receiver of any given transaction is concealed by the use of wallet addresses as the only identifying characteristic of an individual user.