Do you want to know what exactly happens when you send Bitcoin payment to your colleague or an employee? First of all, you must know that Bitcoin is composed of two important pieces i.e. a Blockchain and nodes. In the simplest terms, Blockchain consists of blocks and these blocks are the elements that have transactions. Whether you are using Bitcoin to make deposits in Nektan Limited Casinos online or you want to send Bitcoin to your friend, the first thing you must learn is how these transactions are processed. There are two questions that most of you might be wondering:
- What role does the knowledge of transactions play in helping an individual become a professional Blockchain developer?
- Can these transactions allow the users to transfer the crypto or Bitcoin to your relatives, friends, and other loved ones?
Well, the answers may differ from situations to situations. So, why not learn these transactions from scratch?
Understand Bitcoin Transactions
The new users usually do not look into the technical details of the Bitcoin. As soon as the users download Bitcoin wallet on their smartphone or PC, their first Bitcoin address is automatically generated. In order to transfer the payment, you may need to disclose this information to the recipient. The working of the Bitcoin address is somewhat similar to the email addresses. The only difference is you can use Bitcoin address once only.
Specifically, the standard Bitcoin transaction is composed of three crucial elements that are the header, the input, and the output. The header consists of hash, ver, vin-Sz, and lock-time; while the input features previous output hash, n, and scriptSig.
The major role of the Bitcoin node is to check and verify all the transactions. They confirm that all the incoming transactions are accurate and no amount of information is hampered.
The Basic Pay-to-PK-hash transaction
Do you know Bitcoin supports a custom scripting language? Well, this language isn’t something casual. In fact, it acts as a robust tool that enables Bitcoin developers to create intricate transactions without a hassle. It is worth to note that there exist around 5 or more typical Bitcoin transaction types that majority of the people (mostly the standard clients) approve of. On the other hand, some clients approve of anything but the standard transactions.
In order to verify the authenticity of the transaction, users must assess the scriptPubKey. To put it in detail, the payer has to provide a ScriptSig, which is implemented by the ScriptPubKey.
What’s important to note here is that: since Bitcoin addresses are nothing but hashes, the payer cannot get access to the public key. That’s the reason why the redeemer gives both the private and public keys. This information helps the Bitcoin nodes to verify that the redeemer is the right recipient.