Bitcoin transfers

When a user submits a bitcoin transaction it is validated and finalised through a consistent journey on the Bitcoin network. The journey begins with an owner crafting a transaction that authorises the spending of their bitcoin using a digital wallet.. That transaction is broadcast to the network, and received by other participants running the bitcoin software. The receiving participants then verify the correctness of the transaction according to the protocol rules encoded in their Bitcoin software.

If the transaction is deemed correct by the verification process, it is propagated to each of the participant’s connected peers. This verification process is then repeated for each of the connected peers and the transaction is continuously ‘gossiped’ throughout the network. Eventually, a mining node will include the transaction into a valid block.

Once the valid block is broadcast, it undergoes a similar verification and propagation process, where each participant independently checks the block for correctness and spreads them to their network connections. This intricate process happens for each bitcoin transaction and ensures the correct transfer of bitcoin from wallet to wallet.