Studied by 0 people
What does transaction details include?
the sender's Bitcoin address (from), the recipient's Bitcoin address (to), and the amount of Bitcoin being sent.
First step in creating a digital signature for a Bitcoin transaction?
The transaction data is hashed using the SHA-256 algorithm to create a unique Transaction ID.
How is the digital signature generated in a Bitcoin transaction?
The Transaction ID (hash of the transaction) is encrypted using the sender's private key to create the digital signature
What role does the private key play in creating a digital signature?
The private key encrypts the transaction hash, proving the sender’s ownership of the Bitcoin being transferred and authorizing the transaction.
How do other nodes in the network verify a digital signature?
Other nodes use the sender’s public key to verify the digital signature without needing access to the private key.
Why is a digital signature important in Bitcoin transactions?
ensures the authenticity of the transaction and transaction was authorized by the rightful owner of the Bitcoin being sent
Note 
Flashcard (21)