How are transactions recorded in a Blockchain?
In my last article, I have explained what Blockchain is. By taking an example of the Bitcoin network, let us understand how the transactions are recorded.

Before that, let us understand the term Hash/Hashing that we used in the previous article.

What hashing does is it will take your transaction as an input of any length and creates an output of fixed size (64 digits and letters).

Use the website to understand it better. (Click on the text)

Bitcoin network uses SHA 256 Algorithm.

Let us see how transactions are recorded in the network.

1. We need a crypto wallet to make a transaction; after opening an account, load money into your wallet through the bank account and buy the bitcoin. Now your wallet will show the bitcoins that you are holding.

2.To make a transaction or to send someone BTC. We need the recipient’s public key, senders private key, BTC amount. Think of it as the recipient’s home address when you are sending a parcel (public key), and when you are making an online payment to someone, we need the password (private key).

3. Next, the system will do the Broadcasting of all the transactions in the network, and validators validate the transactions on two parameters.

a) Sender has the desired number of BTC in his wallet. b) Private key is valid.

Transactions are added to the memory pool once they are verified.

4. From the memory pool, miners will pick up the transaction to add to the block. (higher the transaction fees — higher the chances of transaction added in the block faster)

5.Miner will propose the next block, and other nodes will verify the same. (blocks are generated using proof of work consensus mechanism — will discuss in next article)

6. A New block is added to the existing Blockchain.

7. The transaction is complete.
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['Blockchain Technology', 'Bitcoin', 'Bitcoin Wallet', 'Cryptocurrency', 'Blockchain']