Midterm 01 - Process: Someone Sends You Bitcoin

Fall 24

What does the sender need to send you Bitcoin?

Sender needs to send Bitcoin address - can be in the form of a string of characters or a QR code.

How does the sender specify how much Bitcoin to send?

The sender enters the amount they wish to send into their wallet

What is the purpose of the transaction fee when sending Bitcoin?

The transaction fee incentivizes miners to include the transaction in the next block, ensuring it gets processed in a timely manner.

How is a Bitcoin transaction signed and broadcasted?

The sender uses their private key to sign the transaction then broadcasted to the network for verification and inclusion in the blockchain.

What happens after a Bitcoin transaction is broadcast to the network?

The transaction is verified by nodes on the network and included in the blockchain once validated by miners.