Where are the bitcoins stored?
How the transaction takes place
in the network bitcoin and why you need it
private key.
You are on the CryptoInside channel and we
Most people believe,
that bitcoins are stored in
volume of the wallet for which
they translated them.
They think that if we translate
their bitcoins, for example,
to the address of the mobile wallet,
such as Jaxx, then bitcoins
will be stored on your phone.
And if you translate bitcoins
to the purse Electrum address,
then the bitcoins will be stored
on the computer.
This is fundamentally wrong.
Let’s start to understand,
that such a purse in principle.
A wallet is a place where
money is stored.
In the network, bitcoin, bitcoins
stored in the addresses recorded
in the blockhouse.
In fact, the wallet is
the blockade of bitcoin itself,
since all bitcoins are stored
in it.
What is Electrum, Jaxx, Exodus
and other crypto-currency
All of the above
wallets are only
interface for interaction
with a blockade of bitcoin.
They allow you to interact
with your bitcoin address,
send and receive bitcoins.
Interaction with the blockade
occurs through your
private key.
Let’s see what
is a private key.
Private key is random
a combination of letters and numbers,
which is used for
sending or receiving
bitcoins through a special
private address.
A private key is like
pin code that signs
and allows transactions.
Here is an example of how it looks
private key.
As you might have noticed, for
person remember a similar
a combination of characters
is impossible.
For this purpose,
The SEED phrase that consists of
of 12 random words and contains
in itself this private key.
A video about the SEED phrase you
can be found on our channel,
by clicking on the card in
right upper corner of the screen.
Next comes the public key,
which unfolds
from the private key.
The public key is
hashed version of bitcoin
address and does not give access
to your means.
From the public key is deployed
your bitcoin address through
HASH function, which can be
send bitcoins.
Now let’s sum up the intermediate
the result is to consolidate all this.
Bitcoins are stored on addresses
in the blockroom, rather than on crypto-currency
Crypto-currency wallets,
for example Jaxx or Electrum use
your private key for
so that you can interact
with a blockade, send
and receive transactions.
Downloading private key
in any crypto-currency
purse, bitcoins will remain
is stored in the block, and
you only get the opportunity
dispose of them through
Private Key and SEED Phrase
– this is what gives a full
access to your funds
in the blockade of bitcoin.
Public key and address
your bitcoin purse
enable others
people send you money.
Under our video recently
was left like this
comment: “If I copy
file on two flash drives and will
use only one,
and after a series of transactions
I will use the second one
Does it reflect all transactions? “
We answer this question.
On both flash drives is
Your private key, which
gives access to your bitcoin
address and the ability to send
Since your bitcoins are
in the block, all transactions,
whether it is receiving or sending
funds will be displayed
in the blockhouse.
In order to view
these transactions are even private
the key is not needed.
It is enough to drive your bitcoin
address in any block
the browser and you will be
full story available
all transactions associated with
with your bitcoin address.
Accordingly, if you
take advantage of the second
flash drive, then yes, all transactions
will be reflected.
Now let’s figure it out,
what are transactions
and how they occur on the network
A transaction is a signed
message that allows
transfer funds from one
account to another.
Each transaction contains
address of the sender, address
recipient and a signature that
generated using
private key of the sender.
Also, the transaction on the network
bitcoin has Inputs
– where does the money come from)
and Outpust – where to go
Inputs are transactions that are
which you “refer”.
Imagine that your address
X was once sent
three transactions:
TXN_ID – 1, VALUE – 40 BTC (Transaction
1, the sum of 40 BTC)
TXN_ID – 2, VALUE – 5 BTC (Transaction
2, the sum of 5 BTC)
TXN_ID – 3, VALUE – 100 BTC (Transaction
3, the sum of 100 BTC)
If you need to spend,
for example, 45 BTC, then you can
refer to a transaction
3, or immediately for two transactions:
1 and 2 ..
Outputs – literally “outputs”.
So far you can take it,
that these are addresses (although this is
not so), to which as a result
execution of the transaction
will be “sent” means.
Outputs can also be
several, and each of
they indicate their own amount.
The picture below creates
a new transaction C that
refers to two outputs
– A and B.
As a result, at the input of
transactions are obtained
0.008 BTC, which are then divided
on two outputs – on the first
the address is sent to 0.003
BTC, and on the second 0.004 BTC.
Ability to specify at once
several outputs are
A very important feature, because
that the transaction (or more precisely
– its output) can be used
as an input only once
and only entirely.
That is, if you have
incoming transaction on
10 BTC, and you need to spend
8 of them in some Starbucks,
you just create a transaction
with one input and two outputs:
at 8 BTC per store and at 2 BTC
back to your address.
If you create a transaction,
in which the sum of the outputs
less than the sum of the inputs (as
in the picture), then the difference
is sent to the address of the miner,
who wrote your transaction
in the block.
Now let’s look at it.
in commissions.
As you know, commissions
in the network bitcoin are used
so that the miners
confirmed your transaction.
The Commission is the second
by importance source
income for miners and
It depends on the on time
transactions in the blockroom.
This is due to the fact that
every miner exists
some pool of untested
transactions that claim
to hit the block, and, like
rule, the miner is simply
sort them in descending order
commission, thereby maximizing
its profit.
Therefore, the larger the commission,
the higher you are in
queue and the sooner it will pass
your payment.
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