Bitcoin transactions have several characteristics that make this payment method truly unique in the universe of digital payment methods. You can watch the video to know about transactions. In this blog, you will Learn Bitcoin Trading: All You Need to Know.
Irreversible: Once the network has confirmed that transferred 0.01 BTC to Pedro, there is no way to reverse the transaction. This gives robustness to the network because you can trust that if someone pays me with bitcoin the money is mine, unlike payments with bank transfer or credit card, which are reversible by the Bank if it so determines. The money is yours if it is transfered to your bitcoin wallet. There are many types of bitcoin wallets available online.
Pseudo-anonymous: Within the Bitcoin network there are no human identities, but only “Bitcoin addresses”, which are 30-digit alphanumeric codes that represent the equivalent of a bank account, that is, a single space within the “block chain” database .To which bitcoins can be transferred and stored. And they are told pseudo-anonymous because if a person, whose identity is known, publishes their Bitcoin address, the world will know from that moment onwards that the bitcoins that are there are from that person (and all the transactions that receive and send that person to that specific address). This is why it is recommended to use one Bitcoin address per transaction (yes, you can because there are more Bitcoin addresses available than atoms in the universe, and they are free to create).
Fast: Transactions spread almost instantly over the network and are confirmed every 10 minutes on average. However, it is important to note that different people or companies expect different numbers of confirmations. For a natural person and for a small amount, one confirmation may be more than enough, but for a company or larger amounts, the normal is 3 confirmations, that is, 30 minutes (the greater the number of confirmations, the greater the certainty of the irreversibility of the operation).
Global: The only thing that Bitcoin needs to exist is the internet. As long as there are internet and people willing to pay with bitcoins and others to receive them, Bitcoin exists.
Secure: Both Bitcoin addresses and transactions are secured by cryptographic algorithms that would require hundreds of millions of years to be broken using the best supercomputers we have today.
Unauthorized: Bitcoin transactions only require that the owner of the bitcoins sign the transfer, and no one can prevent it from doing so. No company or government can block a transaction for any arbitrary reason such as country of origin, age, sex, or political color.
Bitcoin mining is the process through which a computer runs the Bitcoin software and makes its computing power available to the network to process the bitcoin transactions of other people who use the network, in exchange for a reward in bitcoins. This reward is the economic incentive that the Bitcoin protocol provides so that there are people willing to put their computer and spend electricity in favor of the rest.
These computers, in addition to processing the transactions (which in essence is to check that the source Bitcoin address has bitcoins and that the destination Bitcoin address is valid), try to find the solution to a very difficult mathematical problem. So difficult that of all the computers trying to find the solution to the same problem, only one computer succeeds after 10 minutes, on average. For finding the solution, the Bitcoin network rewards said computer with new bitcoins that did not exist before (hence “mining” bitcoins, as in metal mining), in addition to taking all the commissions that paid the bitcoin transactions that were in the network in the 10 minutes that passed between the previous block and that the solution to the last block was found.
This is the only way new bitcoins are created: through mining, that is, through the process of processing transactions and creating new blocks that update the current state of network accounting.
Transactions and commissions
It happens that there is a maximum number of transactions that can fit in a block, approximately 3,000 transactions, in fact, which means that there is a “competition” to enter the block, and the way to win the competition is by paying miners a pass, or commission, for entering the next block. And how much is the commission?