A word about Bitcoin
Do you know how a Bitcoin transaction works and looks? What exactly is a blockchain transaction? The technical mechanism is really easy to understand, and not only by the “technical” people. Take a look!
- the existing outputs in the blockchain, the so-called UTXO, which were once created by another transaction. UTXO is actually digital “coins and banknotes”, because UTXO is part of the Bitcoin cryptocurrency: the component of this data is simply the “number of Bitcoins” that determines the given UTXO (e.g. 0.82 BTC).
- the data that authorizes access to these outputs, in other words: evidence that existing UTXOs have been sent to you – the “Bitcoins are yours” and you control them. This evidence is e.g. cryptographic signatures created by a cryptocurrency wallet (whereas wallets have cryptographic keys).
- new UTXO, which are used for control by the receiver, “Bitcoins for him” and possibly the rest for the sender. When is the rest? If the transaction had 1 input UTXO worth 1 BTC, and the receiver is meant to get 0.6 BTC, the transaction outputs will be two UTXOs: one (0.6 BTC) for the receiver, and the other 0.4 BTC for the sender as his rest.
I design and build enterprise IT solutions based on blockchain technology.
I am blockchain architect in Trans.eu building ECMR (digital CMR Consignment Note) based on blockchain. I teachabout Bitcoin, blockchain and decentralization via Linkedin and blog: https://mobycrypt.com.