Bitcoin Transaction Details - Part 1
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- Опубликовано: 5 июл 2014
- A look at how a transaction is constructed
This video is part of a larger online course, "From Barter to Bitcoin: Society, Technology and the Future of Money" run by Prof. Bill Maurer and Prof. Donald J. Patterson In addition to the video on RUclips there is a variety of other content available to students enrolled in the class.
"In 2008, a person calling himself or herself or themselves Satoshi Nakamoto released a paper suggesting a system for an anonymous, peer-to-peer alternative money. Bitcoin was born. Although not the first digital currency ever proposed, nor the first challenger to fiat money, bitcoin is the first to have captured the broad imagination of speculators, coders, regulators, criminals and the mass media. This course puts Bitcoin in context: how do we understand money as a social, political and technological phenomenon? From discussions of ancient transactions to the rise of state-issued currencies, we will explore the social and technical aspects of bitcoin, its predecessors and potential successors, and how its features echo aspects of many different historical transaction systems. No prior knowledge of economics or computing is required.
There is little academic writing on bitcoin. And this may be the first truly academic class on the topic. We want to put bitcoin in a wider perspective, to reflect on what it means for society, politics and economics, as well as how it helps us think about money both a social and a technical phenomenon. This class is not an advanced seminar on bitcoin--we will not be delving deeply into the inner workings of the system, but instead providing a bird's-eye overview with enough technical detail for you to be able to put media stories, hype and hope around bitcoin in perspective. Similarly, this is not a class in monetary economics--we won't go too deeply into monetary theory or policy, the money supply, or inflation. Instead the class invites you to think more deeply about one of the oldest systems of technology on the planet, and most ubiquitous: money, whether coin, cash, credit card or cryptocurrency, we humans have been making money for most of the past 10,000 years. How we do so in the future is a question bitcoin just maybe helps us answer." 
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I just spent the last 2 hours trying to understand this thing, and with your video i did understand it in 15 min. Keep up your Awesome work.
Thanks for producing this video. This pulled together all the random pieces I've been reading.
Hello! Might be a bit late but thank you so much for making this video and explaining everything so clearly and well! You got a new subscriber here!
when i checked out the date of the video and i saw 2014 i was like waao... this is 2017 and yet this is still the best video around.. tums up i hope you are still around because i want to be your students.. best bitcoin youtube channel ever
Thanks!
Thanks you so much for putting up such video in explaining bitcoin transaction. Only one I found so far that answers all the questions I have regarding bitcoin transactions
This is my first vid I watch from you, it's 2017 and Just caught on the wave of BTC but honestly a very clear explanation, you really make it simple to understand. Hope you are still around, gotta keep watching more of your videos. Thanks a bunch.
I'm still around. :)
djp3 that's awesome. I now have plenty of technical questions on the Bitcoin network and protocol, I don't know how to address. Hope you can help me professor.
THANK YOU, ONE OF THE MOST CLEAR, EXPLANATIONS I WATCHED,,still a bit complicated though...lol..
Great! Thanks for the video, this is very useful.
You are dope bro! Damn , thank you so much, subbed
very very gooood, thaaankss maan
You are awesome tutor.. Well ecolaineer sir! Thank you!!
When you send 1 bitcoin you have to match that outgoing transaction to an incoming transaction or set of incoming transactions in which you received 1 or more bitcoins. It would be unusual to have received exactly the right number of bitcoins. So when you send out bitcoins, whatever change there was from the incoming set is sent back to you as change. Bitcoin doesn't have a "wallet" per se. You have rights to the outputs of transactions. It's slightly different than the way we are used to with bank accounts.
Excellent performance sir
Straightforward explanation. Thank you sir !
Excellent :) Very helpful
So good. The bitcoin wiki scared me at first. This really broke it down into digestible chunks.
Thanks!
Very Informative thanks.
Thank you soo much! This helped a lot! ❤️
do more of this!! this is amazing
I have atleast watched 10 vids and 15-20 articles couldnt understand the thing... this made is so much clear thank you so much
Thank you so much! You cleared so many of my doubts! 🙌
You're so welcome!
Amazing freaking presentation. I hope you have many more.
Thanks!
very good explanation. thanks bro.
thanks for make it easy and clear.
Awesome explanation!!!
Excellent explanation, Truly professor. Thank you.
he is most probably at a beach now HAHHAHAA
Thank You!
this was golden!
I really like this video.
One subtle but interesting point to me about bitcoin transactions is that the recipient seems to be completely passive... it's not like they receive a knock at the door and need to produce a signature to take "possession" of the bitcoin that is being sent to them - as you might expect if someone had sent a really valuable item in the post.
They ONLY need to provide a signature / private key if the day ever comes that THEY themselves wish to play the role of "sender" of those same bitcoins to somebody else.
Great explaination. 2021 is gonna be amazing for btc
Super explanation, even it is some years old 👍
I have tried tutorials and articles claiming to explain bitcoun transactions and could not get my head around it. Thankyou so much for helping me to undetstand. Your delivery is clear, cogent and easy to digest. Best tutorial.
He was happy while he was saying in C.S we start from 0 not 1. it's the only thing that distinguish us from others :))
I'm proud to be a C.S graduate
Great explanation! Really helped solidify what I was having trouble learning today.
Glad it helped!
so much respect sir this was usefull for me got a sub and like
Thank you, very helpful.
You're welcome!
Thanks, that was great.
Thanks
Good video from handsome professor. I remember the total block transaction fees will be put in coinbase transaction, correct?
You are explaining the UTXO model, maybe you should include this in the video title ? :)
Thanks !
best explanation i found. thanks!
You're welcome!
I agree! I've watched other videos and this one is indeed the one that gives more answers than questions.
Well done!
thx work
Very well explained!
I have a specific question. I hope it will be answered in the next video parts. Why can't I just take an older TX for my inputs (state not spend). Taking this state for input-TX again and again?
THanks man!
Happy to help!
Love your explanation
Thank you!
Great explanation!
Thanks
Thank you very much
You are welcome
I hope you were my distributed system professor back in college
hi, is it possible to track and localize a transaction from 1 crypto wallet to another? If so , who can do it and who is authorized to freeze that specific wallet. thank you
What you could talk about is why is this solution for resolving transactions better than other solutions.
For example, if i send 1 bitcoin To my account, i will have only 1 input which is 1 bitcoin ( 1 UTXO), so if i want to send .2 bitcoin to someone Peer B, under the hood it sends 1 whole bitcoin, and after this transaction will be completed it will returns me .8? what if i want to do transactions more quickly, i mean before this proccess finishes and until i get my .8 btc back, i can not make separated transaction because i will not have any amount of bitcoin right ? if so can i split 1 big UTXO into smaller ones ?
You're such a nice guy; love you! I could hear you talk for hours on end...
Though I noticed you're not from Computer Science; remarkable it is, the amount of stuff you know about the under-the-hoods without even being from CS.
I have a Ph.D. in Computer Science and a Masters Degree in Electrical Engineering. If you care about my credentials you can find out more at djp3.net
@@djp3 Oh, sorry, I thought you were a finance guy... But you do look like someone from wall street.
@@theaman1786 Hahaha! I guess it could be worse. I could look like a guy living on the street. :)
@@djp3 With that beard, indeed possible; LOL. Seriously though, you look more handsome without that beard...
@@theaman1786 lol
now i am in a good mood
can we found where our transaction happening from our wallet, can we trace out IP address of that transaction
Great explanation, thank you! I have the question: how inputs are determined? I believe, there can be a lot of ways to bundle transactions that sum up to 3 BTC e.g.
Within reason, there is no limit to the amount of bitcoin in a transaction and there is no limit to the number of inputs and outputs of a transaction. The inputs are specified as part of the transaction itself. The reference client allows you to pick where you want your transaction to originate from through a feature called "coin-control"
Thank you for your reply! My question was more about wallet apps usage. For example, if I use some wallet app and send N BTC somewhere, then this app somehow decides, how to build exact transaction?
Yes, that's right. It depends on the wallet on what strategy it uses, but it's kind of like a stock sale. You can take the earliest coins you got first, or the most recent coins, or try to use as many incoming transactions as you can, or as few. There are implications for privacy and transaction fees in each choice. I imagine that some wallets expose that to users, but it would likely be an advanced setting since most people don't really care where the coins came from once they've got them.
Imagine the miner trying to tip himself and then thinking "damn". 😅
You look like Ryan Renolds... Almost a doppelganger.
hello my transaction iz peanding long time 4days not confrim . why???
transaction verification seems like a gold mine even in short term
i have sent money to BTC in binance using my BTC wallet in coinbase and its saying 0 transactions, can someone help me with this?
great video, still i have 2 questions,the first is if there's any condition for a block to be closed and added to the blockchain ? like something based on the amount of fees or the time lapse (10MIN) ?? the second is about the confirmation process how does transaction confirmation work through mining
The block is closed when you find a sequence of bits, that when added to the transactions that you are bundling, creates a hashcode with the proper number of zeroes. That is a random process. So while there isn't an explicit time that restricts blocks from closing the process of finding the bits takes time (less if there are more miners). Every two weeks, the number of zeroes is adjusted so that the average time to close a block is 10 minutes. When your transaction is in one of those blocks, then your transaction is considered to be part of the block chain. Most parties in a transaction want to see several blocks closed after the one that your transaction to make sure that the blockchain doesn't fork. So when a transaction is "confirmed" is up to the person that is saying it's confirmed. At least 10 minutes, but many parties require 6 blocks, which would be about 1 hour.
so the miner has to verify the validity of all transactions within the block that he aims to close, while computing the hash code, once found, he broadcasts the block through the blockchain network, is it correct ??
Right. For it to be accepted, the transactions must be valid and the hashcode must be correct.
thank you ^_^
How do I do it
What determines how many inputs there are? ...let's say I have 20 previous transactions that have 1 bitcoin with outputs that point to me...in your example, will it show all those previous transactions as inputs?
The total size of the transaction must be less than 100,000 bytes or it will not be relayed across the network or included in blocks. (c) bitcoin.stackexchange.com/questions/35570/what-is-the-maximum-number-of-inputs-outputs-a-transaction-can-have
So you can include as many inputs/outputs as you want as long as you don't exceed the transaction length limit
Are you sure the inputs and outputs are transactions? If i view transactions on a blockexplorer inputs are wallet public keys
Conceptually each transaction is a connection from outputs of one or more previous transactions to the inputs of the new transaction. The new transaction then forms outputs that can be linked to future transactions. The outputs can only be connected to future transactions if the correct cryptographic credentials are presented. Wallet public keys are half of the credentials, but not the incoming transaction itself.
I am very new to this bitcoin concept, so these questions might sound silly to many, but any effort to make me understand the concepts would be much appreciated:
To whom is the transaction block sent in the distributed network for validation ? How exactly is the validation carried out? How to trust the validation ?
Who are bit coin miners ?(one who helps in validation ?) What exactly is mining ?
Thank you.
Take a look at this video for an overview: ruclips.net/user/edit?o=U&video_id=wZNilVf9h40 fixed link( ruclips.net/video/wZNilVf9h40/видео.html )
It is telling "No videos were found" when i visited that link
Sorry here you go:
ruclips.net/video/wZNilVf9h40/видео.html
Thank you!!! Will have a look at it and then get back to you incase if I have more queries.
Thank you, and by the way, you are very handsome.
nice video, but does the marker screech give anyone else an allergy ?
That's how you know it's real.
3 times did not start, but then it worked
Do transactios generate two outputs? I need some help... I have a receipt, if some one can see it.
They can. One to the destination and one back to the senders wallet with change
@@djp3 Good!! Thanks a lot.
I still don't understand how public and private keys are generated in those examples. I mean I know about RSA, ElGamal, GMR (only for signatures) and how they work but how are they used to create in and output of a transaction. Lets guess:
I put in my public keys into a transaction and some system X (also interesting to know what kind of system) encrypts a value and returns enc(val) to me I decrypt it and send it back. Know that system X creates new public keys representing the new values of my outputs (where ever this information are saved) and somehow knows to who it has to send the new private keys???
I really don't get into it - please help me...
You should research the script language that is at the heart of bitcoin, because what it does is ground the abstract ideas that you are talking about in a actual implementation. The basic idea is that half the program is presented as an output of a transaction. The other half of the program is presented as the input to the next transaction with a link to the output. Anyone can combine the two parts of the program and verify that the result is "true". If it is, then the transfer is valid. In the process of calculating the rest of the program, the input has to present a result that depends on the private key.
DM *Jameskosta2* on ¡nstagram to get private keys🤗
Thats easy (best monty python voice)!
Now do Monero.
I don't understand what's stopping you from using randomly generated inputs to get free bitcoins, how do the miners verify the inputs are legit?
You have to supply a private key (password) in order to use the output of a previous transaction in your transaction.
Hello! Is there any chance that we could track a bitcoin owner through its bitcoin address? Thanks
You can't do it just by looking at the blockchain. It is difficult but possible if you can connect the address with information from another source. The easiest way is to find evidence of a transaction with that same address in the past. The most difficult is to map the network of transactions to another network like facebook or twitter. It is not something that you can just find a website to do for you though.
djp3 Is there any way I can retrieve my bitcoin?
@@annashienaparato7083 Are you asking if you can retrieve bitcoin after you sent it to someone?
djp3 Yes. Is that possible?
@@annashienaparato7083 What bitcoin client (app) did you use to send the bitcoin?
so, Tom Cruise knows blockchain
The internet has told me I am like much worse before... so I'll own it.
im speaking for people that watching in 2025 that I or people that have been calling out to by bitcoin but you guys don’t care about your cash in the future and I feel very sorry for you guys that you jump in the market and now I’m probably being very rich because right now the price is $10k but when you are watching right now I believe that the price probably 100k+ so bad luck guys that you didn’t buy when it’s still cheap
I thought your 100k target estimate was kinda low but let's hope in 2025 it ended up being real low.
Do you still have BTC? :)
Not enough to quit my day job....
Just confusing a newbie.
this is more then a university degree
15% fees on BTC? i send 3 coins and pay 0.5 in fees...?
A little far fetched for the average person to understand.
Hence the rich get richer and the poor get the picture.
Hmmm . . .Sounds like bullshit to me . . . just give me my money . . . this ain’t no disco . . . stop fooling around. 🧐
Money is pretty much bullshit. But it's bullshit that can buy stuff.
Kinda useless explanation. 👎