This week I read to page 44 of the Bitcoin Standard. I wrote down some terms In didn’t know and figured out what they mean. <\/p>\n\n\n\n
List of Terms I was Unfamiliar With: <\/p>\n\n\n\n
Barter; exchange (goods or services) for other goods or services without using money. Only practical in small circles.<\/p>\n\n\n\n
Quintessential; representing a perfect or typical example of something. <\/p>\n\n\n\n
Diagram Showing how transactions are verified on the Bitcoin ledger.<\/p>\n\n\n\n
STEPS<\/strong><\/p>\n\n\n\n 1. Wallet<\/strong><\/p>\n\n\n\n A user stores their Bitcoin in a digital wallet, which holds the private keys needed to authorize spending. The wallet does not hold physical coins, but access to Bitcoin recorded on the blockchain.<\/p>\n\n\n\n 2. Transaction<\/strong><\/p>\n\n\n\n When the user sends Bitcoin, the wallet creates a transaction showing the sender, receiver, and amount. This transaction is digitally signed to prove it is legitimate.<\/p>\n\n\n\n 3. Broadcast<\/strong><\/p>\n\n\n\n The signed transaction is broadcast to the Bitcoin network. It is shared with thousands of computers (nodes) around the world.<\/p>\n\n\n\n 4. Pending Transactions (Mempool)<\/strong><\/p>\n\n\n\n The transaction enters a waiting area called the memepool, where unconfirmed transactions are temporarily stored until they are verified.<\/p>\n\n\n\n 5. Miners \/ Validators<\/strong><\/p>\n\n\n\n Miners collect pending transactions and check that they are valid (no double-spending, correct signatures, sufficient balance).<\/p>\n\n\n\n 6. Proof of Work \/ Mining Puzzle<\/strong><\/p>\n\n\n\n Miners compete to solve a complex mathematical puzzle using computing power. The first miner to solve it earns the right to add the next block.<\/p>\n\n\n\n 7. Block<\/strong><\/p>\n\n\n\n Verified transactions are grouped together into a block. The block includes a cryptographic link to the previous block, forming a secure chain.<\/p>\n\n\n\n 8. Confirmations<\/strong><\/p>\n\n\n\n Once the block is added, the transaction receives its first confirmation. Each new block added afterward increases the number of confirmations, making the transaction more secure.<\/p>\n\n\n\n 9. Ledger (Blockchain)<\/strong><\/p>\n\n\n\n The updated block is permanently recorded on the public blockchain ledger. Every node updates its copy, ensuring transparency, accuracy, and security.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":" This week I read to page 44 of the Bitcoin Standard. I wrote down some terms In didn’t know and figured out what they mean. List of Terms I was Unfamiliar With: Barter; exchange (goods or services) for other goods or services without using money. Only practical in small circles. Quintessential; representing a perfect or […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-51","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=\/wp\/v2\/pages\/51","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51"}],"version-history":[{"count":5,"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=\/wp\/v2\/pages\/51\/revisions"}],"predecessor-version":[{"id":81,"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=\/wp\/v2\/pages\/51\/revisions\/81"}],"wp:attachment":[{"href":"https:\/\/katepassionproject.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}