Bitcoin transactions are like sending money without a bank. Instead of accounts, Bitcoin uses a public ledger called the blockchain to track all transactions. Here's a simplified breakdown:
Initiating the transaction: You (the sender) specify the amount of Bitcoin and the recipient's address in your Bitcoin wallet.
Cryptographic magic: Your wallet uses cryptography to sign the transaction with your private key, proving you own the Bitcoin you're sending.
Broadcasting the transaction: The signed transaction is broadcasted to the entire Bitcoin network.
Miners verify: Miners, special computers on the network, compete to solve a complex math puzzle to validate the transaction.
Block added: The winning miner adds the verified transaction to a new block on the blockchain.
Confirmation: Other miners confirm the new block, and the transaction is considered successful.
This whole process typically takes around 10 minutes. Transactions are public on the blockchain, but your identity remains anonymous – only the addresses are visible.
