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How is BITCOIN Sent and Received

BITCOIN SENT and RECEIVED 

[HoW]

(Newbie)


What Happens when bitcoin is sent and how is it received? How does a Bitcoin transaction occur? What are the processes involved in a BTC transaction?




In Simple Terms sending to receiving Bitcoin is composed of 3 parts




 


Signing:

When the sender sends bitcoin the wallet creates a transaction message containing information of the sender and the amount to be sent. This message is encrypted in  the form of a digital signature which is different for different transaction. This message is now encoded in a file and ready for the next step.

Broadcasting:

The encoded file is now sent to other computers that hold a copy of the block chain, this is know as a node. Each node gets a copy of this file and verifies the file and passed on to other nodes that repeat this process. By this way the bicoin amount is broadcasted in the form of and encoded file. This file is kept in a memory pool (mempool) by each node. The status of the file can be checked using a block explorer which helps you to navigate through the blockchain and can be check if its confirmed not.

Confirming:

The Bitcoin miners group the file from different nodes in the memory pool and create a block and get it in the blockchain. By mining the block is validated and inserted in the blockchain. Once validated we can see the transaction is confirmed and the receiver gets the bitcoins.


To perform these operations we have Miners who do Bitcoin Mining. These processes occur in the back-end when the Send or Receive Button is hit with the help of the miners.









References: 
The Path from "Send" to "Receive" 
Blockexplorer
Mempool  

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