Sunday, October 22, 2017

How Bitcoin transaction happens

Bitcoin is a digital currency, Its already known as Peer to peer transaction currency. In the previous slides you got a idea about bitcoin,  

Lets say you want to send money to from france to America , then you go to the bank and say I want to send 1000$ to jack in America. The bank asks to give 1100$ , what is additional 100$ , that is the fees taken by the central authority ( Bank) , but Bitcoin no central authority so the no transaction fee is there.
How bitcoin transaction works , now I am going describe. There are certain terms to clarify


What is open ledger?


Open ledger means that everyone can access the ledger and see the transactions. As per practical example , if you have a bank account in a bank , if you need to get a transaction list then you are person only can ask for it and entitle to obtain the information.  But if any other person go to the bank and  ask about the statement of your bank account they don’t release it. so its private ledger.
  BTC network is a open ledger , in normal terms , block chain is a open ledger.  So everyone can see  all transaction in the ledger ( Public open ledger).


What is block?


In bitcoin transactions block means , as per a practical example, if you send money  to a person called Jack in America. That transaction is called block.  If you send money to 100 people ,     100 blocks created. 

What is Open Distributed Ledger?


This means, if you do transactions with a person called jack. You transfer money to him and vice versa also. You both have the same ledgers , and its distributed. That’s the block chain.  You also have ledger and the jack also have the same ledger.

What are the miners in Bitcoin network?


Miners are the who validate the transactions in the BTC network.  In the real work every transaction we do through the bank, Bank validate the transactions.  So in the Blockchain network every transaction must be validate otherwise, transactions can be duplicate, scam transaction can be happen so validation duty done by miners.

Miners always update and validate the ledgers. 

1 comment:

  1. Wow what a Great Information about World Day its extremely decent educational post. much obliged for the post. unconfirmed bitcoin transaction

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