Blockchain 101: Episode 15 – How do Bitcoin transactions work

We all have individual bank accounts, facilitating the transfer of money between individuals. Similarly, a Bitcoin transaction is the transfer of Bitcoins from one Bitcoin address to another Bitcoin address. If you want to send Bitcoin to someone else, you’ll need to enter your Bitcoin address, receiver’s address, amount and transaction fee details in your Bitcoin exchange, wallet or your client interface.

Once the details are confirmed, the information will be announced and shared within the Bitcoin network. Every 10 minutes, miners will collect and process all the pending transactions into a new block, marking the completion of one confirmation. Till this point, the Bitcoin has already arrived in the receiver’s address. Nowadays, it takes more than six confirmations to make sure the transaction is valid and considered to be complete.