In simple terms, a transaction tells the network that the owner of some bitcoin value has authorized the transfer of that value to another owner. The new owner can now spend the bitcoin by creating another transaction that authorizes transfer to another owner, and so on, in a chain of ownership.
((("transactions", "defined")))In simple terms, a transaction tells the network that the owner of some bitcoin value has authorized the transfer of that value to another owner. The new owner can now spend the bitcoin by creating another transaction that authorizes transfer to another owner, and so on, in a chain of ownership.
==== Transaction Inputs and Outputs
Transactions are like lines in a double-entry bookkeeping ledger. Each transaction contains one or more "inputs," which are like debits against a bitcoin account. On the other side of the transaction, there are one or more "outputs," which are like credits added to a bitcoin account. The inputs and outputs (debits and credits) do not necessarily add up to the same amount. Instead, outputs add up to slightly less than inputs and the difference represents an implied _transaction fee_, which is a small payment collected by the miner who includes the transaction in the ledger. A bitcoin transaction is shown as a bookkeeping ledger entry in <<transaction-double-entry>>.
((("transactions", "overview of", id="Tover02")))Transactions are like lines in a double-entry bookkeeping ledger. Each transaction contains one or more "inputs," which are like debits against a bitcoin account. On the other side of the transaction, there are one or more "outputs," which are like credits added to a bitcoin account. The inputs and outputs (debits and credits) do not necessarily add up to the same amount. Instead, outputs add up to slightly less than inputs and the difference represents an implied _transaction fee_, which is a small payment collected by the miner who includes the transaction in the ledger. A bitcoin transaction is shown as a bookkeeping ledger entry in <<transaction-double-entry>>.
The transaction also contains proof of ownership for each amount of bitcoin (inputs) whose value is being spent, in the form of a digital signature from the owner, which can be independently validated by anyone. In bitcoin terms, "spending" is signing a transaction that transfers value from a previous transaction over to a new owner identified by a bitcoin address.
The transaction also contains proof of ownership for each amount of bitcoin (inputs) whose value is being spent, in the form of a digital signature from the owner, which can be independently validated by anyone. In bitcoin terms, "spending" is signing a transaction that transfers value from a previous transaction over to a new owner identified by a bitcoin address.
[[transaction-double-entry]]
.Transaction as double-entry bookkeeping
@ -134,7 +134,7 @@ Another common form of transaction is one that aggregates several inputs into a
Finally, another transaction form that is seen often on the bitcoin ledger is a transaction that distributes one input to multiple outputs representing multiple recipients (see <<transaction-distributing>>). This type of transaction is sometimes used by commercial entities to distribute funds, such as when processing payroll payments to multiple employees.
Finally, another transaction form that is seen often on the bitcoin ledger is a transaction that distributes one input to multiple outputs representing multiple recipients (see <<transaction-distributing>>). This type of transaction is sometimes used by commercial entities to distribute funds, such as when processing payroll payments to multiple employees.((("", startref="Tover02")))
judymcconville@roadrunner.com
7 years ago