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Bitcoin transactions are verified by blockchain nodes when a transaction is broadcast to the network and called into the blockchain. The transactions are then included in a block in the blockchain, where they are stored with the other transactions in the block, named a unspent transaction output, or UTXO. An individual is allowed only one UTXO at a time, so spending a previous UTXO requires creating a new one with the public address of the recipient in the script.
A bitcoin transaction consists of the following components:
The inputs are the unspent transaction outputs of the transaction which have been spent, the owners of these UTXOs are changed to the payees.
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The scripts are one or more use scripts. These are instructions that determine how the bitcoins in the inputs will be changed to the payees.
"OP_RETURN" is data that can be placed into the transaction before it is actually spent. This data is often a hash of data or otherwise unspendable bitcoins, for example the reward for mining the coin.
When a transaction is accepted into a block, the block gets hashed and the hash is added to the previous block's hash (called the Merkle root). Any attempt to modify a transaction, spending a coin that appears in multiple places (double-spending), or the inclusion of the same coin twice in a block, results in the creation of a hash of 0. This means the coin has been spent once and can't be used again. This prevents the creation of infinitely-spending coins, as is possible with central-issued bills and coins.
A blockchain explorer is a software tool that retrieves and displays information from the blockchain such as transaction details.
Blockchains are stored in a distributed, redundant computer network that connects individual computers loosely together as a secure data structure. Such systems are said to be permissionless (meaning no single entity controls the network) and permissioned (meaning only a small number of entities control the network and help to validate new blocks).
Network
As of 2019, the bitcoin network has approximately 100,000 nodes.
Blocks
Blocks and coins are formed and added to the blockchain using software that solves a series of difficult math problems.
The blocks-in-a-blockchain data structure, or block chain, is the backbone of the bitcoin network. A block chain is maintained by
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