Mastering Blockchain - Second Edition

Types of transactions

There are various scripts available in Bitcoin to handle the value transfer from the source to the destination. These scripts range from very simple to quite complex depending upon the requirements of the transaction. Standard transaction types are discussed here. Standard transactions are evaluated using IsStandard() and IsStandardTx() tests and only standard transactions that pass the test are generally allowed to be mined or broadcasted on the Bitcoin network. However, nonstandard transactions are valid and allowed on the network.

The following are the standard transaction types:

• Pay to Public Key Hash (P2PKH): P2PKH is the most commonly used transaction type and is used to send transactions to the bitcoin addresses. ...