To find the answer to this question and understand the mechanics of how it all works, you must first understand what a node and a transaction in Bitcoin, how it arises, exists and interacts.
What is a node in bitcoin?
It is a computer or it is also called a node that is guided by the cryptocurrency protocol and participates in the operation of the Bitcoin system. Its purpose is interaction with other nodes, distribution in such a network of reliable data about blocks of transactions and information about payments made and payments made.
What is a transaction in Bitcoin?
It refers to a signed one — the array of data thus designated, which is translated by one node into the network and written into blocks by others. This information module refers to a previously conducted previous transaction and transfers a certain amount of bitcoin coins to the bitcoin address provided, or it is also called the public key. Transmission of the transaction to the network is carried out without encryption. The transaction consists of the following parts:
Input or Input. It is a record of what address the Bitcoin wallet owner came from;
Amount or amount. It reflects the number of bitcoins that are transferred or transferred to another member of the network;
Output or output. It is the Bitcoin address of the recipient of this cryptocurrency.
How is the transaction?
It does not mean and does not provide data transfer from one computer to another, but acts as a banner that notifies, signals that one user has rewritten some of their bitcoins to another, which, on its basis, rewrites them to itself. During the implementation of these actions, the transaction is recorded in an open register, which is called a blockchain.
Each transaction corresponds to a unique unique inputs and outputs. The output is a record that makes the owner of the bitcoins of another member of the network. Input is a code – a digital reference to the output from the previous transaction.
!It is important to know! You can use output as input in a subsequent transaction only once. In this case, it will be considered spent, and it will no longer be possible to carry out actions with it in future.
The number of withdrawals is not spent – this is your bitcoins. The total amount of bitcoins existing in the network is equal to the number of non-spent leads They can be called bitcoins, which are currently in circulation.
How is the transaction confirmed?
With a digital signature. Confirmation of the transaction by the owner of a Bitcoin address is provided with a digital valid signature. That it is one of the most important elements of the security of using this cryptocurrency. To generate a digital valid signature, the same private key is used, which is required to create a Bitcoin address.
The validity of any transaction is recognized by the network if it contains the correct bitcoin address, digital signature and information about the previous output. You can check validity by cosmos validating services, they are providing secure validation.