Concept
How do bitcoin addresses and private keys authorize payments?
chapter 5 / Building the Blockchain
"Bitcoin addresses appear on the public blockchain as strings of letters and numbers, and other people can use them to send funds to the associated balance. To make a payment, wallet software uses a private key uniquely associated with an address and mathematically combines it with the public information to create a valid authorization. The wallet selects sufficient funds from one or more addresses, sends the requested amount to the recipient, and can return any excess as change to an address controlled by the sender."
Related Ideas
- What is recorded in the bitcoin blockchain?chapter 5 · Building the Blockchain
- How do other miners confirm a winning block?chapter 5 · Building the Blockchain
- How does the blockchain prevent double-spending?chapter 5 · Building the Blockchain
- Why is a decentralized public ledger important?chapter 5 · Building the Blockchain
- Why can a transaction take time to become fully confirmed?chapter 5 · Building the Blockchain
- How do hashes package transactions into blocks?chapter 5 · Building the Blockchain
- What role does the Internet play in decentralized money?chapter 5 · Building the Blockchain
- Why does each block link to the previous block?chapter 5 · Building the Blockchain