Creating a transaction
When you send bitcoin, your wallet selects spendable bitcoin, specifies a recipient address, and creates a transaction. It signs the transaction with your private key.
The signature proves authorization without revealing the private key. The network can verify that proof using public information.
Keep the big picture in mind
Broadcast and confirmation
After broadcast, nodes check the transaction against Bitcoin's rules. Valid transactions normally wait in the mempool until a miner includes one in a block.
The first included block is the first confirmation. Additional blocks make a reversal increasingly expensive and unlikely.
Fees and finality
Fees are paid for scarce block space, not based on the value sent. A wallet may estimate an appropriate fee based on current demand.
Bitcoin transactions cannot normally be cancelled after confirmation. Check the address, amount, and fee before you approve a payment.
Key Takeaways
Transactions are authorized with digital signatures.
Nodes verify transactions before miners include them.
Fees pay for block space.
Confirmations increase confidence that a payment is final.
Quick Quiz
What happens before a valid transaction enters a block?
Continue Learning
Continue building your Bitcoin knowledge with these guides.
Ready to Learn More?
Whether you're completely new to Bitcoin or want help improving your security, we're here to help with practical, one-on-one guidance.