Bitcoin Transactions - from "Send" to "Receive"
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- čas přidán 19. 09. 2017
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Learn all about what happens to a single Bitcoin from the moment you hit send in your wallet until it's received on the other side.
Here's what I'll cover:
0:54 - Signing a transaction
2:22 - Broadcasting a transaction
3:22 - Using a block explorer
4:30 - Transaction Confirmation
6:10 - Conclusion
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See anything we haven't covered? Leave us a comment in the comment section below - Jak na to + styl
Wow being a network engineer, I’m hearing a lot of familiar terms. But you explain it so that everyone can understand. Love it!
yeah "send", "receive", "broadcast" and "nodes" are so complicated terms that require years of study and researching in network engineering to fully understand but he managed to explain them to other people who don't have the wisdom knowledge of network engineering as you
@@caret4812 😂😂
Say you’re just a 20 year old now, blockchain is at its peak and you wanna learn it so would you wanna be a network engineer or study a diploma in blockchain
CAUTION!! Many scammers are using the comment section to promote their scams and sometimes even use the name “99Bitcoins” in their profile. Never send money to someone you don’t know and don’t accept offers to trade or exchange cryptocurrency from strangers.
Stay safe 🙏🏻🙏🏻🙏🏻
i'm new to blockchain...i have so many doubt. After mining or verification of block the bitcoin is going to receive to the destination or not. since for every transaction it verifies the transaction by each node and added to the pool for forming block. So my doubt is even after verification of transaction should we have to wait for mining of block to received bitcoin. please guide me i'm really confused of this process
What block explorer did you use in this video? I cant see the website. plz show me.
Really appreciating the way in which whole complex process is explained in very illustrative manner and in small amount of time.Had watch couple of hour long videos couldn't find better explanation then this one
best explanation! love your videos, very clear and simple. thank you!
The most simplified explanation of bitcoin transaction life cycle. Thank you so much 🙏
This channel is a gem ❤️🙏🏻
Nate you are really helping me to understand bit by bit. At first it was a bit overwhelming too much info at once. I have only seen three videos I believe. I started last Friday, I think.
What a fantastically simple way of explaining it! Keep up the great work. I recommend every newbie to this channel because of the simplicity of explanation. Thanks!
Daniel Rojas agreed
Very good explanation, thanks
This reminds me of the PGP concepts from the 90's when we first tried encryption to send email...very cool.
Great video it explains very well
I was hoping for a send/receive steps. Little did I know this was an entire class.
Very good teaching.
Makes very good sense to this n00b!
You are amazing! Thanks very much
thank you, very clear! :)
You should have added the consensus mechanism to the 3rd step and explained it : )! love your channel!
As always, a very informative video.
Glad you enjoyed it
thank you so much
thank u
Wow, Excellent and completely satisfactory Explanation. I heard the term "People who own copy of blockchain" now need to understand this.
So why can a transaction be cancelled after 1 confirmation? And why does 6 confirmatiins guarantee that a transaction cant be cancelled?
How do the other nodes confirm that your signature "checks out"?
When sending Bitcoin from my computer, how does my computer know which computers to send this transaction for verification? Where are the addresses of these broadcasting computers stored?
hey Nate (or anyone who can help me)
if a block is comprised of hash's & ledgers (transactions) and bitcoin has a capped amount of coins that can be mined then were will the transactions take place if there's no more blocks?
will blocks be expanded? will work be delegated and allocated to side chains or different ecosystems such as eth or cardano?
Thankyou!!
How does your wallet know the location of other nodes ? Fixed IP npdes ?
Where do transactions reside until they are found by miners? What prevents 2 miners from including the same transaction in their block?
Thank you for your explanation. I am confused by the part where you said miners get to pick transactions with the highest reward attached to write to the block first. Do I, as a sender, need to specify the reward each time?
there are some platforms or places where you can voluntarily increase your own transaction fee so it's more attractive to be picked up by miners
1:09 I'd love to have a friend who would casually send me 1 bitcoin.
Hi Nate!
THANK YOU!!!
No problem!
Do all miners try to solve the same block? Or can it be that each miner has a different set of transactions in their block?
If the mining is becoming harder and harder, does that also indicate that less transactions will be confirmed?
Hey JM,
As the difficulty of mining Bitcoin increases, it generally takes more computational power and resources to successfully mine a block and add it to the blockchain. This means that the rate at which new blocks are added to the blockchain will decrease, which can result in a slower confirmation time for transactions. However, this is not a direct correlation and the confirmation time also depends on the number of transactions being sent, the fees attached to them and the current state of the network.
So how does the receiver's wallet notices that now it owns one Bitcoin?,,, do the Bitcoin node gives a push message'????? Does this service has any cost?
So if the transaction is confirmed only once, there's still a chance that it can be cancelled?
i wonder if you are satochi nakomoto him self?
So, if a transaction is not confirmed at all, (zero) how can a sender cancel the transaction?
Please give us explain about invalid transaction...
I don’t understand the broadcasting part. How does my computer know which other computers are nodes and who would want their computer to be used as a node? Doesn’t that take resources?
Okay now I understand the mining video better.
I want to send 1527.99 exactly because am buying something online and I want to deduct the charges from my wallet not from the btc am sending
What will happen to bitcoin fees if it goes to 1,000,000 per coin
5:10 But why do we need a competition in the first place? For enhanced security? And how does this "competition" follow? Based on what criteria?
its a mystery
What causes the sig to differ each time?
This did clear up a lot for me.
Have you ever thought about an analog wallet machine? It would generate addresses and signatures mechanically. What do you think about this? Possible? The highest standard of security?
The signature is different every time, because no two transactions can have the same set of inputs and outputs, and the signature is a hash of the entire transaction content.
You're like the Bill Nye the science guy of cryptocurrency. Thank you for these videos you're awesome!
What is hashing done
What happens if a node shuts down that's continuing the bitcoin ledger?
How to start a Bitcoin?
When is hashing done
Hi i have an enquiry:
I had made a first withdrawal via a unique payment Network address. After that, i accidentally copy pasted the same network address for my second transaction which is made payable to the same company. The company has informed me that they did not receive the coin even though the withdrawal was successful from my wallet.
1) is my coin gone?
2) is there anyway to retrieve it?
what happens when there are no miners to confirm the transaction? or no one is able to solve the equation to enter the block? does this happen? can it take days for a transaction to enter a blockchain
Probably this'll not happen until there will be no "block rewards" or "transaction fee" Included with transaction. If there were very few miners as of 2009, the mining difficulty will be reduced to a large extent and we are able to mine BTC with a CPU.
Yes, it takes days for a transaction to enter a Blockchain but this is very rare.
You said we've to wait for 6 transaction confirmations to know that it's legit.
How can there be any cancellation in the first place once the transaction goes into the block?
6 blocks is usually recommended as a good tradeoff between certainty and convenience. You can wait less if it's a small / unimportant transaction or longer if it's a large / important transaction.
Due to the Bitcoin network's decentralized nature, it's possible for chain re-organisations to occur. This is why it's recommended to wait.
What happens during a re-org is that miners solve a block at roughly the same time then both transmit their solution to the network. Some nodes will see the next valid block as coming from miner 1, others from miner 2.
The network will then be divided between these two competing chains. The way this situation resolves is that the chain which finds a new block first becomes "more valid" than the slower chain, as Bitcoin clients are designed to recognise the chain with the most accumulated proof of work as the real chain.
The chances of a re-org occurring after 6 blocks (roughly one hour on average) are very low and go lower with more time, which is why it's considered a safe waiting period.
And let's say the miners find they did you dirty. Who gives you your coin back?
Or who punishes them?
Sir, I used mining software after mining I pay mining fees but still not received btc
Can you send Bitcoin via an email address only now? 2023
Hello, I bought a Ledger Nano S hardware wallet. Once I activate it how do I send bitcoins to the person who is doing the buying /trading for me? Also, what will they see, will this person see how much portfolio it has in it, or will they see only the amount of bitcoins I recently purchased and am sending to them?
does anyone know, when it was possible to send and received BTC in 2012?
I have my bitcoin transfer 99 confirmed yet has not receive it .What do I do?
what happends if there's no miner? a block is nerver confirmed?
Whether the second step is broadcasting or propagating???
I need some serious help. Bought bitcoin. Send it to my wallet. Never showed up in my records. Same output as input on the block? Neither company will help. They call this a P2SH..... what do I do? Which platform is responsible for this?
which block explorer are you using?
Blockchain
Please cover taking BTC off of exchanges to a cold storage wallet
What will happen if the transaction gets cancelled ? Are the bitcoin lost for ever or retrievable ?
Hi Nate, does this process apply even when I transfer my bitcoin from my exchange account to my personal wallet? Or is it purely for transfers between individual wallets etc?
Crypto exchanges use the same kind of wallets for deposit and withdrawal as users do. When an exchange sends your coins to your private wallet, that transaction goes through the blockchain as per usual, just like when you send coins to your exchange address.
While your coins are in the exchange, things are a little different. They use an internal ledger to keep track of user trading, as that doesn't need to go on the blockchain, and would be too slow to do that way.
If addresses show the transaction history of a wallet how do you keep that info safe. If I pay someone I need to know their address and then can look up that wallet to see how much money they have and their transaction history. Am I missing something? Because that seems like a huge problem
Yes, wallet balances and histories are public, but why would it be a huge problem?
How do I withdraw my bitcoins to my personal bank account?
Hey there @Sylvia,
if you want to sell your Bitcoins and get Dollars or Euros instead you'll need to:
1. Find a Bitcoin exchange
2. Deposit your Bitcoins on that exchange
3. Sell your Bitcoins for USD / EUR on the exchange
4. Withdraw the USD / EUR to your bank account
Here's a list of the top Bitcoin exchange today: 99bitcoins.com/best-bitcoin-exchanges-comparison-review/
Hope this helps
how those this method corresponding with UTXO? is the validation of transaction happens with UTXO database or with the blockchain nodes?
Hello @Lior,
Thank you for your question. These are two different processes.
The UTXO model is what ensures that the sender has the exact balance remaining in his wallet, after sending a portion of his coins.
The blockchain nodes confirm that the ledger is updated with the transactions. They ensure that the most accurate account of who owns what is broadcasted so that the transactions are done transparently.
I hope this helps!
I received 272 confirmation but i did not find any thing in my waller
If a digital signature does not depend on your private key, then what's stopping someone else from creating a digital signature and saying it's from you using your public key?
of course it depends on your private key
Hi dear, I am new to BTC, but I have to have BTC wallet.
I appreciate if you can help and advice which BTC and which wallet to use. Thank you. Zalmay
How long does it take you forgot the best part
so if there are many pending transactions and less miners , then the users have to wait for a long time just to send a bit coin?
Hi @Blaze, nice to meet you! Whenever the number of miners goes down, it becomes much easier for them to earn the new coins mined. No transactions will pile up and stay pending as long as there are miners in the network!
Thank you, that did help my understanding! The 1 question I leave this video with is this:
So, I understand that for an "average" person to invest in crypto, they pay a transaction fee in hopes of miners and their software picking their transaction, and then the "golden nonce" being found within a block on the blockchain for which their transaction resides. If your transaction is picked, then it's essentially analogous to spinning the wheel or running the slot machine in a way...
However, what confuses that concept to me is your scenario in the beginning when you simply want to "send 1 bitcoin to your friend Steve." This no longer seems like investing to me, this seems more comparable to transferring money from 1 bank to another, yet, we utilize the same, probability based approach whereby you won't have any probability to transfer money to your friend Steve if the fee is too low, and therefore miners don't ever pick your transaction. This just seems like an overly complicated and inapplicable approach for transferring something. Surely there is a less "casino" approach to simply transferring crypto? Or is there something I'm missing?
The fee is used as an incentive to encourage 'miners' to verify the transactions, so in a way it is a kind of lottery as there is a natural limit to how many blocks can be created.
In reality though the fee simply increases the probability vs. time of your transaction being confirmed. A low fee doesn't exclude you but does decrease the probability of confirmation in any given minute; your transaction will most likely still go though but you will have to repeatedly 'spin the wheel' (i.e. wait longer) for your number / confirmation to come up.
@@loc4725 Thanks so much for confirming this for me :) Got it.. from what I've read even with a low fee it's still quicker than wire transfer or check processing lol
@@bluex217 No worries. 🙂 I would also say there is one caveat though now you mention it.
The probability of your transaction being confirmed is likely to be dramatically reduced in the event of a Bitcoin 'run'. A spike in transactions is likely to overwhelm the system and additionally drive up the fee as people scramble to liquidate and attempt to outbid each other for confirmation.
It's just something to think about as I know a lot of people, myself included, are thinking about buying during this dip / panic.
I still join the company last year than I did not get my profit so can you help me
Hello, I'm a beginner. I'm not sure my question is approriate here but I hope you can help me out. My bitcoins were sent to an address in the blockchain which is not mine. It's still "unspent". How can I retrieve this ? From what I understood in one of your other video's, I think I only have an exchange wallet. Thank you for your clear video's and explanation. I learn a lot, but maybe too late. Thank you for your answer.
@@99bitcoin45 Thank you for your answer
You didn’t cover how to receive btc
Has is ever happen that a transaction was never confirmed and the bitcoins did not return to its original address?
Not to my knowledge, no. Although transactions do fail to confirm, usually because they paid an insufficient fee during times of network congestion, eventually the transaction is simply "forgotten" by the network - or drops out the mempool - and the coins are returned to the sender. There are also more sophisticated ways of dealing with such stuck transactions, such as Replace By Fee (RBF) which allows the transaction to be resent with a higher fee if that option is supported and enabled in the sender's wallet. Child Pays For Parent is another way to resolve this issue, by sending a transaction with a sufficient fee which is contingent on the original being mined.
Thanks for educating me, I love this. Questions will come later.
Why bitcoin transactions need to be hold in block chain
It seems so complicated I'm supposed to buy a Bitcoin and then they're going to send me a Bitcoin wallet to send it to another person so I don't know how to do all that so it's very complicated for me
Hello Carmela,
Before you buy Bitcoin, you first find a wallet that you'll deposit the coins into. There are many types of wallets you can use. I suggest looking for the most popular ones on this page: 99bitcoins.com/best-bitcoin-wallet-comparison-review/
The Bitcoin you bought will be sent into your wallet. From there, you can choose what to do with the coins. You can keep them for later, or send it to a friend's wallet (if they buy it from you), or spend it online, or exchange the Bitcoin into other cryptocurrencies.
I hope this helps!
How do you send money through Bitcoin and confirm the transaction without the other person getting your information
Hi Timothy,
By default, Bitcoin was built to be anonymous. The only information the other person will get if you sent them some coins would be your Bitcoin address.
To do this, you will need to have their Bitcoin wallet address. You go to your wallet, choose an option that allows you to send the Bitcoin, paste the recipient's wallet address, and enter the amount of coins you wish to send to them.
Please refer to this guide on how to buy and use Bitcoins anonymously: 99bitcoins.com/buy-bitcoin/anonymously-without-id/
I hope this helps.
5:57 Really? 6 blocks, interesting. Never heard of this before.
shut it. u blockhead.
2:47 but how do they check my balance and know its legitimate,,, plus shouldn't my balance be secret 😅
How do i find out the name of an exchange or wallet if I have the address?
Hi @Pat Walker,
Since all Bitcoin addresses have a similar format of a random string of letters and numbers (they all start with 1 or 3), it is quite difficult to guess the exchange or wallet address correctly. With some advanced skills, it is possible to cross-reference addresses using a blockchain explorer like blockchain.com.
However, even after finding out the right details, it would be much harder to trace the person who holds that wallet. It may not be worth the effort to search for the wallet in the first place.
I hope this helps.
How exactly the miners verify that the transaction is valid?
What exactly they checking?
They're checking whether the sender has enough money for the transaction, whether digital sig. matches the sender, etc.
The miners (and nodes which pass transactions on to miners) will check that a transaction follows the system's rules. The full blockchain shows the complete record of every amount which has either been mined into existence or moved from one address to another over time.
By checking each step (and if a transaction is recorded in the chain, it's taken as valid as there's no other authoritative record of which transactions are valid) in the movement of value, one reaches a set of all the addresses currently holding spendable value (the UTXO set).
Miners will check that any address attempting to send value is part of that UTXO set, owns enough Bitcoin to cover its intended transaction, and isn't trying to send the same coins to multiple addresses at once (if so, only one transaction will be chosen and once that gets mined, the other attempts will be considered invalid).
These are the general sorts of things which get checked.
@@99Bitcoins Thanks!!
May I ask one more question?
Who generates the new hash for that the miners need to guess?
When you say the miners are verifying transactions, is it individual humans checking them, or do they just leave their computers running that checks them automatically?
@@Tarekofsky Computers.
I sent 50.00 to my friends cell # instead of his btc address, on coinbase. Its pending for 2 day. Is it lost?.
No it's not
It's just some type of verification problem by the server it's not lost you can get it back by cancellation and retry again properly
If this doesn't work it's lost cuz this same thing happened with me so I retried and it worked properly
Okay so what if an entity has majority of nodes (not miners, which are expensive) under control which accepts or validates even illegal transactions coming from that entity for ex. spending say 2 Bitcoins even if he/she has 1Bitcoin.
P.S. I understand that gaining 51% of the total hashing/mining power requires a lot of overhead expenses and would be highly impractical do so. But here I am talking about gaining control of majority of nodes (and not the miners) to work in your favor. A billionaire can set up such huge quantities of nodes I perceive.
So what happens when there's no miner to create the blockchains? Does this mean no transactions can ever be confirmed? This way, it seems like the blockchain technology will fail
Block chain say 0 of 3 confirmation after 5 hours
So far i hate bitcoin. I don't understand why there's no phone numbers to answer questions. I want to somehow get my money out and never go back.
How the bitcoin transaction are searched in the history of ledger?
Hi Lokendra,
To see the Bitcoin transactions initiated from a wallet, you take that wallet's public address (it usually starts with 1 or 3), and search for it on Blockchain.com. You will see all the transactions done by that wallet. You will also be able to see where the Bitcoins were sent from and where they were sent to.
I hope this helps!
@@99Bitcoins Thanks for your response, it helps me. Actually, I was asking for the algorithm that works for the searching in the whole ledger, its searching complexity and whether we can improve it if possible. If you could answer that, it would really help me.
Thanks in Advance.
Hi again Lokendra,
I am not sure I understand your question fully, particularly the part on 'its searching complexity and whether we can improve it." Therefore, I'll attempt to answer it, but feel free to clarify the question.
Here is a block explorer: explorer.btc.com/btc/blocks
You can see all the confirmed transactions, and the pending transactions from this ledger. If you have transacted before, searching for the results using your wallet address will list all transactions done through the wallet (so far).
In the early days I always thought 99bitcoin was a scam site. They had so many ads on their site
If our transaction is never confirmed then do we get our Bitcoins back??
Yes. Although transactions do fail to confirm, usually because they paid an insufficient fee during times of network congestion, eventually the transaction is simply "forgotten" by the network - or drops out the mempool - and the coins are returned to the sender.
Okay thank you
@@99Bitcoins blockchian to bitpay is that possible sending bitcoin
This guy must net worth must be larger all of the comment section cobined
To earn money you have to put in money that's the simple philosophy of wealth.
That's why most professional trader's use Bitcoin for forex trading
Investment is the key currently, we all know that the most profitable investment is forex trading and Bitcoin
@@smith8196 I don't think forex trading is profitable because I tried trading myself,I failed though 😟😟
Someone is about to make a payment to me in Bitcoin. He asked me to download "Blockchain" APP so as to obtian my blockchain wallet. But he asked me to provide with him both my wallet address and password so as to enable his company to connect my blockchain to his company's platform. As it is the first time that I have learned that a company is asking me for both my block chain wallet address and password., I am wondering whether he is a scam or not.
He doesn't need your password for any of that. That's probably money laundering, theft or something. Hope you didn't give it to him?
@@lolafemi41 No, not yet. That's why I am very prudent in and dubious about giving out my login password of my "blockchain" APP login in account. Thank you for your kind advice.
How can a transaction be cancelled after it already has at least one confirmation?
in bitcoin what do it mean awaiting payment in 565:42 minutes
I want 10 dollars Bitcoin will it Happen ??
" 1 bicoin" lol..= $ 50,000
I don't understand this, everybody keeps talking 'keep your seed phrase safe', 'keep your private key safe', 'don't share them with anyone', but, to SEND crypto one needs to SHARE the keys with the wallet right And the wallet is software based. Even a hardware based wallet has software in it. I heard the crypto ecosystem nowadays is like 'wild wild west' not regulated or anything. I think the main cryptocommodity is trust. People trust people they'll do the right thing and then boom, someone makes a video that their crypo assets have been stolen. Even the paper wallet with the QR code, gotta show it to the camera on your phone or mobile, right?