7.11 Receiving and Sending Transactions

A bitcoin transaction is a transfer of ownership of existing bitcoins to a new owner. However, instead of transferring actual coins, all the nodes in the network update their local copy of the public ledger to reflect the change in ownership.

When sending a bitcoin transaction, the sender signs a message that only they can sign with their private key, signaling to the network that the ownership of the bitcoins changes to the recipient’s address. The bitcoins will now be tied to an address that only the new owner can send from, giving them ownership of the bitcoins.

Receiving Bitcoin Transactions

To receive bitcoins, you will need to provide the sender with your Bitcoin address. You can share your Bitcoin address in one of several ways:

1. QR Code: Most wallet apps can generate a QR code for your Bitcoin address, which the sender can scan.

2. Copy and Paste: You can copy your Bitcoin address from your wallet app and paste it into a message or email to the sender.

3. Share Directly: Some wallet apps allow you to share your address directly through various communication apps.

Sending Bitcoin Transactions

To send bitcoins, follow these steps:

1. Open your wallet app.

2. Create a transaction: Enter the recipient’s Bitcoin address, the amount to be transferred, and any applicable transaction fee.

3. Sign the transaction: Use your private key to sign the transaction, signaling to the network that you authorize the transfer of bitcoins.

4. Broadcast the transaction: Once signed, the transaction is broadcast to the Bitcoin network, where nodes will verify its validity.

5. Wait for confirmation: Miners around the world compete to record transactions in the ledger. Once your transaction is confirmed, it will be added to the blockchain.