Explore the step-by-step process of how cryptocurrency transactions are validated and recorded on a blockchain.
Initiating a Transaction
A user creates a transaction by specifying the recipient’s address and amount, signing it with their private key.
Broadcasting to the Network
The transaction is broadcast to the peer-to-peer network for validation by nodes or miners.
Validation and Consensus
Miners verify the transaction against the blockchain rules and compete to add the block containing the transaction to the chain.
Confirmation and Finality
Once included in a block, the transaction receives confirmations as subsequent blocks are added, ensuring immutability and finality.
This transparent and secure process enables trustless cryptocurrency transactions worldwide.
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