From Sender to Blockchain: The Ballet of Bitcoin Transactions Unveiled

Bitcoin, conceived by its creator Satoshi Nakamoto, aims to establish a payment system free from intermediaries, fostering direct transactions between users.

Here's a breakdown of the seven stages a BTC transaction undergoes in the main network:

1. Recipient and Amount Selection:

   • Users select the recipient, transfer amount, and transaction commission.

2. Signing and Sending:

   • The sender signs the transaction using a private key and transmits it.

3. Node Verification:

   • Nodes verify the transaction's eligibility before forwarding it to miners.

4. Mining Inclusion:

   • Miners incorporate the transaction into a block.

5. Hash Calculation:

   • Miners compute the hash of the new block.

6. Blockchain Validation:

   • The new block undergoes verification and becomes part of the blockchain.

7. Network Update:

   • Nodes integrate the new block into their individual copies of the blockchain.

Understanding this process reveals key insights:

• Nodes can only skip a transaction if the sender lacks the required BTC amount.
• Miners possess the ability to postpone processing a transaction but lack the capacity to annul it.

In essence, Bitcoin operates as a decentralized system, ensuring the integrity and security of transactions through a meticulously designed process.