BTC transaction example
Technically, Bitcoin doesn't use bank accounts with balances. It uses a system called UTXO (Unspent Transaction Output), which is more like keeping track of individual available balances (a wallet balance is the sum of spendable UTXOs). But for simplicity, let’s look at it like a transfer.
Let’s say Alice wants to send 1 BTC to Bob.
The blockchain updates to show that Alice has 1 less BTC and Bob has 1 more. It’s like Alice writing on a public billboard, "I sent Bob 1 Bitcoin," so everyone knows the money moved.
When Bob wants to send that money to Carol later, the network checks the history to make sure he has that “unspent output” received from Alice. Everyone’s ledger stays in sync because the computers are constantly talking to each other.$BTC
Technically, Bitcoin doesn't use bank accounts with balances. It uses a system called UTXO (Unspent Transaction Output), which is more like keeping track of individual available balances (a wallet balance is the sum of spendable UTXOs). But for simplicity, let’s look at it like a transfer.
Let’s say Alice wants to send 1 BTC to Bob.
The blockchain updates to show that Alice has 1 less BTC and Bob has 1 more. It’s like Alice writing on a public billboard, "I sent Bob 1 Bitcoin," so everyone knows the money moved.
When Bob wants to send that money to Carol later, the network checks the history to make sure he has that “unspent output” received from Alice. Everyone’s ledger stays in sync because the computers are constantly talking to each other.$BTC