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🧾 What Happens When You Send Bitcoin?

Pierre avatar
Written by Pierre
Updated over 2 weeks ago

❓What are the steps involved in a Bitcoin transfer?

A Bitcoin transfer doesn’t go through a bank — it goes through a decentralized network secured by the blockchain. Here's a breakdown of the key steps:


1. 📝 Creating the Transaction

You start by creating a transaction using your Bitcoin wallet:

  • You enter the recipient’s Bitcoin address.

  • You specify the amount to send.

  • Your wallet digitally signs the transaction using your private key, proving you own the funds.


2. 📡 Broadcasting to the Network

Once created, the transaction is broadcast to the Bitcoin network:

  • It’s sent to multiple nodes (computers that participate in the network).

  • Each node checks whether the transaction is valid (correct signature, sufficient funds, no double-spending).


3. ⏳ Waiting in the Mempool

After validation, the transaction enters the mempool (short for memory pool) — a kind of waiting area.

  • It stays there until a miner selects it to include in a new block.

  • Transactions with higher fees are prioritized.


4. ⛏️ Validation by a Miner

Miners choose transactions from the mempool and compete to solve a complex mathematical puzzle (proof of work).

  • The first miner to solve it creates a new block of transactions.

  • This block is then broadcast to the rest of the network.


5. 🔗 Adding to the Blockchain

If the block is verified by other nodes:

  • It gets added to the blockchain, the public, tamper-proof ledger of Bitcoin.

  • Your transaction is now confirmed.


6. ✅ Confirmation and Receipt

  • Once included in a block, your transaction receives its first confirmation.

  • As new blocks are added, your transaction gains more confirmations, increasing its security.

  • Generally, 6 confirmations are considered safe for finality.


🧠 In summary:

🔐 Signature → 📡 Broadcast → ⏳ Mempool → ⛏️ Mining → 🔗 Blockchain → ✅ Confirmation

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