@ -80,10 +80,6 @@ The bitcoin network can transact in fractional values, e.g., from milli-bitcoins
Transactions are like lines in a double-entry bookkeeping ledger. ((("inputs, defined")))In simple terms, each transaction contains one or more "inputs," which are debits against a bitcoin account. ((("outputs, defined")))On the other side of the transaction, there are one or more "outputs," which are 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 transferred, 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.
@ -92,6 +88,9 @@ The transaction also contains proof of ownership for each amount of bitcoin (inp
_Transactions_ move value from _transaction inputs_ to _transaction outputs_. An input is where the coin value is coming from, usually a previous transaction's output. A transaction output assigns a new owner to the value by associating it with a key. The destination key is called an _encumbrance_. It imposes a requirement for a signature for the funds to be redeemed in future transactions. Outputs from one transaction can be used as inputs in a new transaction, thus creating a chain of ownership as the value is moved from address to address (see <<blockchain-mnemonic>>).
myarbrough@oreilly.com
10 years ago