Cryptocurrency Transactions Explained

A Simple Transaction

Let’s sketch up a picture of how every transaction on the blockchain is executed (for example, from your digital wallet to someone else’s).

  1. The blockchain verifies your public key so it can store the transaction information on the blockchain.
  2. The blockchain network takes your public key and verifies that you do, in fact, own the amount of cryptocurrency you’re trying to send.
  3. The network checks itself to determine if it has previously promised this attempted transaction to someone else. After the details are verified, the blockchain network then stores the transaction information.
  4. Within a couple of hours, the recipient will see the new balance on his account, and the balance will be deducted from your account; transaction completed.

The Intricacies of the Network

From a bird’s eye view, the transaction is a simple, and hopefully logical, process. But, as Apple, Inc.’s iconic co-founder, Steve Jobs, said, “Simplicity is the ultimate sophistication.” Blockchain is no exception. An impressive amount of calculations is handled below the surface so that blockchain’s “simplicity” can shine.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Coin Cloud

Coin Cloud

The world’s leading operator of two-way Digital Currency Machines (DCMs), more advanced Bitcoin ATMs.