Notes

For transactions within the same block.
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For transactions to other blocks.

Blocks

A block in a blockchain contains a header and a set of transactions. New transactions are appended to the block and linked to the previous block using a cryptographic hash of the block header. The hash serves to prevent double-spending, allow estimation of the age of the block, serve as a location-independent address, and enforce sequential numbering of blocks.

When a miner finds a block whose header points back to the previous block, they broadcast the block to other nodes of the network. These nodes then place the block in their copy of the blockchain. Gaps in the list of blocks signify where a block has been orphaned and no longer referenced by any other nodes. As more miners attempt to mine a block, the likelihood of finding a duplicate or orphaned block increases.: ch.

The block header of the block contains the hash of the previous block header, the timestamp, and a link to the prior block. This link is used by the network to maintain the blockchain's chronology and prevent the creation of orphaned blocks.

The header also contains a set of transactions in the block, including inputs and outputs. A transaction outputs a specified number of bitcoins, as well as optional script data, to its scriptPubKey. The scriptPubKey may contain additional data depending on the transaction type, and may be interpreted as unlocking the bitcoins after a specified number of blocks. Scripts are interpreted using a scripting language, described below, with the scriptSig as its input, which specifies how the bitcoins are to be split between two or more parties.: 217–222  When a transaction inputs bitcoins to the blockchain, they are unspent outputs of previous transactions. Since the owner of the transaction can spend the bitcoins multiple times, they are recorded in many previous blocks. The transaction owner signs the transaction using the private key corresponding to the public key in the scriptPubKey, to prove that they own the bitcoins. When the owner broadcasts the transaction to the bitcoin network, it is packaged into a block along with other transactions that had used up the bitcoins.: 225  The block also includes an output to a special address, known as a change output. The change output is the transaction's output minus the value of all the transaction inputs. The miner receives any change output plus a small amount of bitcoins, and is expected to keep the change output. Any remaining change is returned to the input
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