Bitcoin transaction


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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 bitcoins 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 buying something for $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 (private key) that proves ownership. The transaction is then broadcast to the Bitcoin network. See digital signature, Bitcoin node, Bitcoin and blockchain.
References in periodicals archive ?
In this analogy, the crowded downstairs is on-chain bitcoin transactions while the empty upstairs bathroom represents off-chain transactions.
SegWit paved the way for solutions such as the (https://lightning.engineering/) Lightning Network , which creates a layer for bitcoin transactions to zip across the world without waiting in the main chain line.
Even though there are only around (https://charts.bitcoin.com/chart/daily-transactions#b2k) 293,000 bitcoin transactions per day, cryptocurrency analyst (https://digiconomist.net/bitcoin-energy-consumption) Alex de Vries estimated bitcoin transactions now account for 0.12 percent of the world's electricity consumption.
The value of using a Bitcoin attack to steal things is related to the size of the largest Bitcoin transaction you can make, so this means that in order to keep Bitcoin usage costs low, transactions have to be kept small -- which makes paying for things cumbersome and slow.
After it is verified by a few others, the pending Bitcoin transaction is cleared and the virtual units appear in the seller's account and become available to him to spend.
A Bitcoin transaction works in a way that is similar to a transaction in the Yap payment system.
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.
Bitcoin transaction is the record implying that transfers the value of coins from a sender to a recipient as shown in Figure 2.
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.