🎯 How does a crypto transaction work? (Simple explanation)

When you send cryptos (e.g., Bitcoin to a friend), here’s what happens behind the scenes:

đŸ”č 1. Creation of the transaction

You specify:

  • how much you want to send

  • to which address

    💡 (e.g., a sort of IBAN number, but for crypto)

đŸ”č 2. Cryptographic signature

Your transaction is signed with your private key 🔐, similar to a digital signature.

📌 It proves that you are indeed the owner of the funds.


đŸ”č 3. Propagation in the network

The transaction is sent to a network of nodes (connected computers).

âžĄïž They check if you have enough funds and if the signature is valid.


đŸ”č 4. Added to a block

Once validated, the transaction is placed in a block with others.

💡 This block is waiting to be confirmed by the network.


đŸ”č 5. Block validation

Depending on the blockchain (Bitcoin, Ethereum, etc.), the block is validated via:

  • Proof of Work 🔧

  • or Proof of Stake đŸ§Ÿ

This ensures that the block is legitimate and secure.


đŸ”č 6. Added to the blockchain

The block is added to the chain, permanently.

Your transaction becomes immutable (non-modifiable).


🎉 7. Transaction confirmed

Your friend receives the funds, the transaction is complete!

✔ It is publicly visible, but no one can modify it.


✅ Quick summary:

✅ You create the transaction

✅ It is signed

✅ The network validates it

✅ It is added to a block

✅ The block is integrated into the blockchain

✅ It is irreversible and secure

🧠 Did you know that every transaction is public and traceable?

Do you want to talk about the role of miners or validators next time?