ScaredyCatGuide to Bitcoin and Other Cryptocurrency – Part VII – Bitcoin Transaction and Confirmations by scaredycatguide

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cryptocurrency · @scaredycatguide ·
$79.64
ScaredyCatGuide to Bitcoin and Other Cryptocurrency – Part VII – Bitcoin Transaction and Confirmations
Now that we have an understanding of what bitcoin is and how to buy and secure it using wallets and exchanges; let’s discuss what a bitcoin transaction is and the confirmations needed before it completes so the bitcoin is received.

___
#### <center>*This post is part of a running series on bitcoin and blockchain basics*</center>
<center>Find previous posts here:</center> 

<center>[Part VI - Two Factor Authentication and Passphrases](https://steemit.com/cryptocurrency/@scaredycatguide/scaredycatguide-to-bitcoin-and-other-cryptocurrency-part-vi-two-factor-authentication-and-passphrases)</center>
<center>[Part V – Wallet Addresses and Keys]( https://steemit.com/cryptocurrency/@scaredycatguide/scaredycatguide-to-bitcoin-and-other-cryptocurrency-part-v-wallet-addresses-and-private-keys)</center> 
<center>[Part IV – Bitcoin Wallets]( https://steemit.com/cryptocurrency/@scaredycatguide/scaredycatguide-to-bitcoin-and-other-cryptocurrency-part-iv-storing-bitcoin-using-wallets )</center> 
<center>[Part III – Buying & Selling Bitcoin](https://steemit.com/cryptocurrency/@scaredycatguide/scaredycatguide-to-bitcoin-and-other-cryptocurrency-part-iii-buying-and-selling-bitcoin)</center> 

___

<center>![](https://steemitimages.com/DQmb8MA94NWF2aXzz3AUjeNpPBVYmtZAtGg4XCXi9EUyhNw/image.png)</center>

# Bitcoin Transaction
This definition is simple enough – a bitcoin transaction is a transfer of digital ownership of bitcoin on the bitcoin network.  

The size of the transaction can go all the way out 8 decimal points (0.00000001) after the period, though a transfer that small would likely not work on an exchange as it does not cover the transaction fees at current prices.  

The denomination size is also referred to as satoshis, in regard to bitcion’s creator.

### Sending and Receiving
As previously discussed, you can send and receive bitcoin from your software wallet on your computer or phone (or exchange account).  To send, you need the wallet address of the person you are sending it to and conversely provide your wallet address when receiving.

For those using mobile devices to transact, you can make it even easier by using QR Codes.   Every type of bitcoin wallet allows you to generate QR codes.  

With QR codes you can have it include your wallet address and also the amount of bitcoin to be sent.

**NOTE:**  you do not have to be connected to the internet 24/7 to receive a bitcoin payment.  The transaction occurs on the blockchain and will show in your wallet once you connect again.

It takes less than a second for a bitcoin transaction to register, however it takes longer for it to process and complete as a set number of confirmations must be reached.

# Bitcoin Confirmations
The bitcoin network was designed to have require a maximum of six confirmations for a transaction to complete.  Six is the most secure and ensures a miner can never hijack, so to speak, your bitcoin by receiving that many blocks in a row.

With that said, three confirmations has become a bit of the norm in the bitcoin world as it’s extremely unlikely a miner could receive three blocks in a row, they would need nearly half of all the hashing power of the bitcoin network, so good luck with that.

Confirmations are received as each new block is discovered on the blockchain follwing the transaction being submitted.  As long as the transaction is deemed valid it will receive a confirmation.

A confirmation can take up to ten minutes and if the maximum of six is required, it could take up to an hour to be processed.  However, this is rare and I have found it to be much faster.  Additionally, all transactions I have done only required three confirmations, further speeding things up.

The speed of transaction is one of the reasons there has been much talk in the bitcoin community about increasing the block size from 1mb to 2mb.  

However, that has not occurred yet and was most recently put on hold when the segwit2 hardfork was cancelled.
___
#### <center>In the next post we will discuss the Bitcoin Network and it’s Security</center>
___
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vote details (153)
@goldenarms · 
These posts do help ppl that may not be so versed as the majority of users here on Steemit. Thanks scg. Quality post and person 👍😎
👍  
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@scaredycatguide · 
Thanks my man, trying to add value on here :-)
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@sacred-agent · (edited)
Just wanted to say essentially the same thing as @GoldenArms...

Thank You SCG for writing this series of Posts... even I have learned a few things from them.

Sorry that I've been somewhat "missing in action"... where I live in Florida,  we had the largest Boat Show in the world with over $4 Billion worth of Yachts, Boats, etc. I worked during this time and am just now catching up with my "normal" life responsibilities. 

>> : ~ ))

Well Done SCG...

Cheers !!
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@scaredycatguide ·
$0.05
Hey @sacred-agent, are you talking about the boat show in Lauderdale?  That's my neck of the woods.
👍  
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@noniwalcks100 · 
Great post my friend well done
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@hanamana · 
I bought Bitcoin a couple days ago....I had to figure out how.  Needed this type of guide.
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@scaredycatguide · 
There is more where that came from, hopefully some of the past posts can help you as you transact more and/or move bitcoin to and from wallets.  Good Luck! :-)
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@minnowbooster ·
$0.00
@minnowbooster upvoted this post!
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@originalworks ·
originalworks
The @OriginalWorks bot has determined this post by @scaredycatguide to be original material and upvoted(1.5%) it! 
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@lahcen80 · 
Awesome, appreciated. It's very informative post,
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@jamesanity06 · 
It's nice to see once in a while people who really wants to enlighten and help people understand things that they DO NOT understand, because often times people gets scared or even shun things they don't understand completely, that's why I salute those people who went out of their way to explain some things that can honestly be learned or researched thanks to the internet. What I'm saying is, you guys are a BIG help, compared to people who tends to abuse the fact that only few are aware of what's going on in the crypto world, and resorts to scams and frauds to earn dirty money.
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@rksumanthraju · 
Nice information !!!
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@minimalpris ·
$0.04
<center><h1>Thank you for this awesome and excellent cryptocurrency post</h1></center>
<div class="pull-left">https://sc.mogicons.com/l/thumbs-up-192.png</div><br>This post have been choose to be one of the 3 best cryptocurrency post, the last 24 hours by @minimalpris and are included in our daily report 

[here](/cryptocurrency/@minimalpris/20171110t060026451z-post)
<br/><b>Great job</b>
👍  
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vote details (1)
@scaredycatguide · 
Awesome, thanks!
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@statsmonkey ·
comment
Congratulations, your post received one of the top 10 most powerful upvotes in the last 12 hours. You received an upvote from @minnowbooster valued at 44.65 SBD, based on the pending payout at the time the data was extracted.

If you do not wish to receive these messages in future, reply with the word "stop".
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@bitgeek ·
comment
Congratulations @scaredycatguide, this post is the eighth most rewarded post (based on pending payouts) in the last 12 hours written by a Hero account holder (accounts that hold between 10 and 100 Mega Vests). The total number of posts by Hero account holders during this period was 246 and the total pending payments to posts in this category was $3642.09. To see the full list of highest paid posts across all accounts categories, [click here](www.steemit.com/steemit/@bitgeek/payout-stats-report-for-10th-november-2017--part-ii). 

If you do not wish to receive these messages in future, please reply stop to this comment.
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@fouadahram · 
Good 👍👍👍
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@adarsh02021991 · 
Concept well explained !! Started following you on youtube and steemit
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