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Author: Admin | 2025-04-28
Bitcoin (BTC) has risen in prominence over the past few years. However, while it’s grown in several forms, transactions will always be central to its operation. How do Bitcoin transactions work? What’s involved? How much does it cost to send Bitcoin? Our guide is an in-depth review of how BTC transactions work and why they are now a popular means for transactions.A Bitcoin transaction is simply a transfer of value between two wallets, which is recorded on the blockchain. To send money from a Bitcoin wallet, the sender must sign the transaction with his or her private key, as proof of ownership of the funds. If you want to know more about trading Bitcoin, join BeInCrypto Trading Community on Telegram with like-minded people. Here you can share your experience, discuss and read all the hottest news on Meme coins, Web3 and the Metaverse. Join us In ThisGuideHow do Bitcoin Transactions WorkPublic and Private KeysThe Characteristics of Bitcoin TransactionsTransaction Verification and How it WorksHow Many Confirmations Does Bitcoin Need?How Long Does a Bitcoin Transaction Take?Why Some Transactions Can Take Longer than UsualPros and Cons of Using Bitcoin For TransactionsPros of Using Bitcoin for Settling Transactions:Bitcoin for TransactionsFrequently Asked QuestionsHow do Bitcoin Transactions WorkBitcoin uses the UTXO model send transactions. In the UTXO model, every transaction consumes one or more unspent transaction outputs (UTXOs) and creates one or more new UTXOs. UTXOs represent a value of a certain number of bitcoin that is available to be spent in a future transaction.Here is an example of how a bitcoin transaction works using the UTXO model:Alice has two UTXOs, one for 1 bitcoin and one for 3 bitcoin. She wants to send Bob 2 bitcoin.Alice creates a new transaction that consumes the 1 bitcoin UTXO and the 3 bitcoin UTXO, and creates two new UTXOs: one for 2 bitcoin that is sent to Bob and one for 4 bitcoin that is sent back to herself as change.Alice signs the transaction with her private key to prove that she is the owner of the UTXOs being consumed.The transaction is broadcast to the network and miners
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