A bitcoin transfer does not go through a bank. It is processed directly on a decentralised network, secured and made transparent by the blockchain.

When you initiate a transfer, your Bitcoin wallet creates a transaction. It contains the recipient's address, the amount to send, and a digital signature that proves you are the rightful owner of the funds. At Bitstack, this signing key is managed by our systems on your behalf.

Once created, the transaction is sent to thousands of computers participating in the Bitcoin network, known as nodes. Each node verifies that the transaction is valid: correct signature, sufficient funds, no double spend.

Once validated by the nodes, the transaction enters the mempool, the shared waiting area used by all Bitcoin network participants. It stays there until a miner decides to include it in a new block.

Miners prioritise transactions with the highest network fees: the higher the fee, the faster the processing.

Miners select transactions from the mempool and compete to solve a complex mathematical calculation, known as proof of work. The first to succeed creates a new block containing those transactions, which is then broadcast to the entire network.

If the block is accepted by the other nodes, it is added to the blockchain: Bitcoin's public, immutable, and secure database. The transaction is then officially confirmed.

Once included in a block, the transaction receives its first confirmation. Each new block added after it adds one more confirmation. Generally, 6 confirmations are considered sufficient to guarantee the finality of a transaction.