Bitcoin Transactions — Step by Step
How Blockchain WorksLesson 4·8 min read
Lesson by Uvin Vindula
A Bitcoin transaction contains: Input (where the BTC comes from), Output (where it's going), Fee (paid to miners), and a Digital signature (proof of ownership).
Confirmation Times
- 0 confirmations: Transaction broadcast, unconfirmed
- 1 confirmation: Included in one block (~10 min) — low value OK
- 3 confirmations: Considered secure (~30 min) — moderate value
- 6 confirmations: Highly secure (~60 min) — high value transactions
Transaction Fees
- Fees go to miners (not to Bitcoin or any company)
- Higher fee = faster confirmation
- During network congestion, fees rise (supply/demand)
Key Takeaways
- •Bitcoin transactions contain inputs, outputs, fees, and digital signatures
- •6 confirmations is considered highly secure (~60 minutes)
- •Transaction fees go to miners, not any company
- •Higher fees mean faster confirmations
Quick Quiz
Question 1 of 3
0 correct so far
How long does 1 Bitcoin confirmation take?