We all know that bitcoin is a kind of coin where the value always fluctuates. It can either be less or more. It will be if the merchants decide to transfer everything or buy with bitcoins then the value will increase in a second. But it won’t even take a second if suddenly merchants decide to stop this system from using bitcoins then the price will decrease. So the value of bitcoins totally depends on the merchants. There is no fixed value for this bitcoin and there is no guarantee also that every time the value will only increase. Till date government hasn’t taken any single decision about bitcoin so the value is always counted in different currencies. Even bitcoins are not widely accepted. Some people earn bitcoins by solving critical maths puzzle.Before going into how to do transactions of bitcoins lets know some more about this widely popular cryptocurrency.
A bitcoin is basically accepted by very few people and, since no government has taken any decisions about bitcoin so bitcoin is a worldwide payment. And it is the first decentralized digital currency, as no bank is involved in this system. The transaction in this bitcoin system is taken place between users to users and no third person is involved in this kind of transaction. Now there are few ways to do transactions of bitcoins, we will discuss it after some time. Using this bitcoins you can book hotels, buy furniture etc. But before earning these bitcoins one should keep it in mind that bitcoins are not widely accepted and the value of bitcoins won’t take a minute to increase or decrease as this totally depends on the merchants.
About Bitcoin Transaction
A bitcoin transaction is a transfer of values between bitcoins wallet which is included in the blockchain. Wallets of bitcoin always have a secret piece of data which is called private key. This private key is used to sign for transactions. For that one has to solve a mathematical proof to prove that they have come from the owner of the wallet. Basically, the owner of the wallet has to give a mathematical proof to prove that the wallet is used by him only. Now let’s talk about the blockchain. A blockchain is basically a chain that continuously grows the list of records called blocks, which are secured and linked using cryptography. Today we will talk about the ways of the transactions in bitcoin. But first, let us talk about bitcoin developer guide. It is obvious that there are guides to develop bitcoin. Bitcoin was created by an unknown person.
So obviously there will be guides to develop this bitcoins or protect the wallets. Let’s check out:
* P2PKH Script validation
* P2SH scripts
* Standard and non-standard transactions
* Signature hash types
* Transaction fees and change
* Transaction malleability
These are the few developer guides as the wallets are not so safe because any can hack wallet account and make those bitcoins orphaned forever. So first let us check the transaction and then the ways of transactions in bitcoin.
Types of transactions in Bitcoin
Now if we write then there are six standard transactions in bitcoins, but all the transactions are not safe or may show some problem there are few popular types of transactions that will help you and those sites won’t show any kind of problems and they are safe for transactions. The developers of this system keep on working so that those sites may show some more options or they work properly. They keep on updating those pages so that they work properly. Right now there are six standard transactions are listed but in future, the list may change. Among these six ways of the transaction in bitcoins five ways are accepted by the clients. The popular transaction method is TX_PUBKEY, or pay to the public key transaction. Now let’s check out the list of the six ways of the transaction in bitcoin. They are:
- Pay to the public key(TX_PUBKEY)
- Pay to address(TX_PUBKEYHASH)
- Pay to script hash(TX_SCRIPTHASH)
- Multisignature transaction(TX_MULTISIG)
- OP_RETURN Meta coin(TX_NULL_DATA)
Wallets and awareness
Now this list may change in future as bitcoin community or the developers of bitcoin keeps on updating these websites so that the clients do n’t have to face any kind of problems. And the bitcoin community has introduced to different types of wallets which are secure enough and has made the transactions much easy and safe. Now obviously there will be a problem in complex transactions as they occupy more space in blockchain which is a big issue regarding block sizes.
The procedure for a bitcoin transaction
If you are a bitcoin user then you should be aware of the transaction methods in bitcoin. Only for the sake of your confidence with the new innovations and you should be well known about the emerging signature transactions and contracts. The only reason for bitcoin transaction is to transfer the ownership of an amount to the bitcoin address.
So today we have discussed the ways of transactions in bitcoin. Basically, a bitcoin transaction is a data that is brought to the network and if it is found valid then it ends up in a block in the blockchain.