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 th...
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