During the last couple of years, the popularity of cryptocurrencies has increased tremendously, thanks to the decreasing popularity of fiat-based systems and the potential high-profit margins being offered.
As you probably know how cash, banks, and online money work, it is equally important to get a better understanding of how digital currency transactions take place. At this time, there are numerous knowledge pages that aim to explain the basics of the crypto market.
For instance, here is a relevant resource on cryptocurrency transactions that you might want to take a look at. You’ll get the chance to learn more about the technicalities associated with each Bitcoin transaction, how cryptocurrency mining works, while also getting more insight into the market.
To briefly explain Bitcoin transactions, the process starts with two participants — persons A and B. In case A wants to send some bitcoins to B, A will need a cryptocurrency wallet, coins, and B’s public key address. A then proceeds to log into her wallet using her private keys. Then, A enters the amount being sent alongside B’s Bitcoin address.
Once these details are filled in, the transaction is broadcasted to the network, where miners’ hardware calculate complex hash functions to determine its authenticity. Once this process is finalized, the transaction will be included into a block (a bundle of transactions), and then published on the blockchain. At this point, B has received funds and is free to use them as she pleases.
It is important to keep in mind that Bitcoin transactions take between several minutes and two hours to get confirmed. While you’ll see the sum received in your wallet instantly, you can only make use of the funds after at least three confirmations.
Feel free to enjoy the infographic for more fun facts about the cryptocurrency market.