The blockchain transactions are like a series of recorded transactions within several bitcoin addresses.
All these transaction records will be updated by the Bitcoin network.
It will be shared between the nodes whenever the balance increases or decreases.
A Simple Transaction
Let us consider that TechPally wants to send some bitcoins to HealthPally, in this case, there will be three processes involved in the Bitcoin transaction.
There is the input where the record of the bitcoin address from where TechPally received the bitcoin which is to be transferred to HealthPally is given.
Then comes the amount which is the bitcoin value which TechPally has to send to HealthPally.
Then there is the output, which involves the public key of HealthPally. This can be called the bitcoin address of HealthPally.
The Elements of the Transaction
In order to make a bitcoin transaction, there should be accessible to public and private keys that are related to the amount of bitcoin.
When a person claims to have bitcoins, it actually means that the person will have the access to a key.
This key will be the combination of a public key as well as a private key.
The public key is where the bitcoin was previously sent.
There is a unique private key that corresponds to the mentioned public key.
This will help in authorizing the transaction previously sent to the public key which is to be sent somewhere else.
The public keys are also called bitcoin addresses.
They are basically a random sequence of numbers and letters that will function similar to the email address or like a username of a social media site.
Since this is public, it is safe to share the public key with other users too.
The public key has to be sent to others when a bitcoin transaction is to be made.
The private key will have letters and numbers. But the private keys, unlike the public keys, should be kept a secret.
The private keys should not be shared with anyone under any circumstance.
The private keys should also be backed up in the pen and paper format and should be kept in a safe place.
The bitcoin address is similar to a transparent box. The content inside the box can be seen by anyone but they should have the private key to unlock it and procure the funds therein.
The Actual Transaction
In the given scenarios, TechPally will have to initiate a bitcoin transaction to HealthPally.
In order to perform this, TechPally should use a private key in order to sign a message with the respective details.
The message which is sent will have the input, the output, and the amount.
The input will be the source of the coins which was initially sent to TechPally.
The output will be HealthPally’s public address.
The amount will be the transaction amount from TechPally to HealthPally.
The transaction will be broadcasted to the Bitcoin Core Network.
Here the verification of TechPally’s keys in order to access the input will be accessed.
This process, which is involved in confirming the address from where TechPally received the previous transaction, is called mining.
In this process, new bitcoins are also created. All the given transactions will be verified by miners who are present in the Bitcoin blockchain.
The miners here will mine the blocks which represent the collections of transactions.
There are chances where some transactions will be left out of the given block and will be put on hold until the next one is arranged.
The general time to process it is ten minutes. This might cause some delay in the bitcoin transaction and hence the process might take a longer time.