Bitcoin transactions: instructions for beginner crypto owners
Let’s discuss what is bitcoin cryptocurrency and how bitcoin transactions work.
Bitcoin transactions are carried out between electronic wallets. For complete security, they are digitally signed. Transactions are public, any participant can study information about the sender and recipient in the available network of blocks, as well as get acquainted with the entire history of previous transactions, up to the initial stage of the appearance of the first crypto coins. For information, go to https://blockchain.info/ and enter the transfer information in the Search field.
Some people just keep bitcoins, expect to increase their value in the future. Let’s talk in more detail about how transactions should be carried out while spending bitcoins.
In real life, there are no bitcoins, there are only transaction reports.
As funny as it sounds, it’s true. They are also missing from the hard drive. We think that someone has bitcoins, but if you look at a bitcoin address, there will be no digital money there. It is impossible to call any physical body or electronic file bitcoin.
Indeed, there are records of transactions between addresses, the balance on them is constantly changing. Do you want to check the balance of a bitcoin address? After examining it, you will not find anything there. You will have to calculate the balance after reviewing all transactions related to the address of interest. They are stored in the block chain.
For example, Maria sends bitcoins to Vasily. This manipulation is called a transaction, it includes three types of information:
• Input (input) – information about where the bitcoins came from to the Machine address, say, they were sent by a friend Olga.
• Amount (amount) – the amount of bitcoins sent to Vasily Maria.
• Output – Vasily’s bitcoin address.
Bitcoin transactions: How to send crypto?
To complete the transfer, you will need a bitcoin address and an encrypted key. It makes no sense to compare a bitcoin address and a personal bank account. They have practically nothing in common. To open a bitcoin address, you do not need to fill out a huge amount of paperwork and provide identity documents. They are formed in random order and are a random alphanumeric sequence. The hidden key is also an alphanumeric sequence, but its storage is secret.
A personal bitcoin address can be represented as a transparent deposit box. Anyone can look into it, study what is inside, but only the owner of the private key can take the contents.
Let’s return to Maria and Vasily. When Maria has a desire to share digital money with Vasya, she signs an application for transfer with a disguised key. The application contains three types of information: the bitcoin address (where the bitcoins were transferred to Mary), the amount of the transaction, the bitcoin address of the recipient. After that, Maria sends the application to the network from her personal bitcoin wallet. The miners detect and validate the transaction, it is added to the transaction block. After that, the balance of Vasya’s bitcoin address increases.
Why are there delays in transaction confirmation?
Confirmation of transactions is carried out by miners, at the same time they mine new coins. Therefore, in some cases, you have to wait for the completion of mining. The Bitcoin algorithm provides that the mining of any block takes ten minutes. If the payment is made with the help of processing companies, for example, Coinbase, BitPay or others, then you don’t have to wait at all. They have a scheme for instant approval of the transaction after the transfer of bitcoins is completed.
Are there transaction fees?
Not always. Various factors affect the calculation of fees. Some wallets have the option to manually set the reward amount. The balance of the transaction that is not claimed by the recipient or was returned as change is considered a reward. It is taken by the miner, he solves the block of transactions as an additional reward.
Currently, many miners are processing transactions without commission. If we take into account the fact that for each subsequent block the reward decreases, this situation cannot remain unchanged.
The situation with transaction rewards used to be confusing, the commission was calculated according to a complex algorithm. Thanks to updates to the software core, including the transaction manager, the method of processing the commission has been improved, the minimum amount will be selected automatically.
Is a bitcoin transfer document issued?
The system does not provide for the issuance of any documents. But due to future updates, methods of working with payments will change, they will become more convenient for customers. Processing firm BitPay will provide additional features that are not provided for typical bitcoin transactions, such as statements, order confirmation sheets.
Will I be able to send half of the bitcoin or any part?
Certainly. Bitcoins are fractional units up to one hundred millionths.