Using the previous example, as shown in the following diagram, let's assume Alice wants to buy something from Bob and she agrees to pay Bob $10 or 10 Bitcoins (BTC):
Let's walk through the high-level processes step-by-step, demonstrating how the blockchain works:
- Create blockchain transactions: A transaction is a value transfer between two parties. When Alice sends $10 or 10 BTC to Bob, it will create a transaction with one or more inputs and two or more outputs, where the inputs reflect Alice's account, and the outputs reflect which account(s) Alice intends to transfer to. The transaction is then digitally signed ...
