Bitcoin transactions structure in a simplified way understand to for newbie.

[hmbdofficial]

This post is to make transactions structure as simplified as possible as I also find it a bit complicated when learning that aspect big bitcoin. and I said to my self that after I get it, I’ll make a post in the aspect to make it a bit simpler to understand to other new forum member as well.yis being spent)

Transaction input can actually be a coinbase transaction i.e the reward the miner earn from adding another block to the blockchain or a previous output spent by another wallet.
Basically the input raw data should contain
- the previous transaction ID
- output transaction index(who’s is the output that is being spent)
- the unlocking /signature data
- sequence.
While the output contains
- the amount ( satoshi )
- the spending conditions i.e the scriptpubkey.

It’s good to know that input is referenced an old UTXO that you want to spend, and output creates a new UTXO that can me potentially be spent later as input in the future transactions.
Now you may be asking where does the bitcoin come from?
Let assume I received transactions A of 1BTC the transaction will be like I received an output of 1BTC Wch is basically my UTXO meaning unspent transaction output. And if I want to sent maybe 0.5BTC to another person, I’ll just create another transaction B.

The input for the transaction will reference to my previous output transaction which is the 1BTC i received  previously, like this input= references transaction A, output ( 1 BTC)
And the output will will be the 0.5btc I want to sent to another person plus the transaction fee of let say 0.01
So it will be like this:

Output = 0.5btc to the receiver and 0.49BTC as change to me with fee inclusive that is why you’ll notice the difference of 0.01btc in the change that will be sent to output Wch is locked to my key. What you need to understand is that two output where created because you can’t spent only 0.5btc from your 1BTC so you have to fully spent the 1BTC then send 0.5btc to the person you’re sending to and create another output to return your change of 0.5 btc.

I know you may be asking what allows me to spend a coin on the network ? It’s just a spending condition that is attached to every output created Wch commonly involves public key of hash of the public key. So when I want to create new transactions my wallet provides the required unlocking data which typically includes a digital signature.

If you wonder what exactly is stored in a UTXO it’s just basically the amount and the spending condition.
Once you understand that transaction are just output creating new outputs your solve 50% of your problems with transactions structure.

[Hypnotizer]

This is a nice initiative but your formatting and wording arrangements will make it even harder for Newbies to comprehend, it might even end up confusing them more.. so maybe you should edit and polish the post such that it is able to convey the message to the intended audience which are Newbies.

In simply and concise terms, Bitcoin transactions structures is made up of two basic components which are the Inputs and the Outputs, and understanding these two things will give you the ability to understand the whole picture of what the Transaction Structure is.

For newbies trying to learn more about Bitcoin Transactions and how it works, this can help: https://learnmeabitcoin.com/beginners/guide/transactions/

[Emjay24]

Consider adding infographics, you wouldn't need to explain much if you added them and it would've made your point more understandable. An image is worth a thousand words

While the output contains
- the amount ( satoshi )
- the spending conditions i.e the scriptpubkey.

The change if available, the output includes the change that would be spent back to your address, or a change address if you use a HD wallet. Again the proof of ownership of funds(digital signature) which is obtained by using your private key to sign the digital fingerprint of the transaction.

What you need to understand is that two output where created because you can’t spent only 0.5btc from your 1BTC so you have to fully spent the 1BTC then send 0.5btc to the person you’re sending to and create another output to return your change of 0.5 btc.

Change of 0.49BTC, did you forget about the 0.01BTC fee in a hurry?

Nice efforts, but even as I'm not a beginner, it was tasky to read through and understand clearly, this wouldn't help a beginner so much, but at least you expressed yourself and flexed your new knowledge. Kudos!!!

[Doan9269]

Understanding bitcoin transaction is not difficult to do as long as you have the necessary materials that shows the procedures from one step to the other, it does not also work in a same pattern with traditional system as we are used to Fiat, bitcoin transaction as secured and fast, safe and reliable.

Any newbie interested in going for bitcoin most understand how the model works with Bitcoin, we can know it until we go for it and understand the procedure so that we can take advantage of every benefits bitcoin transaction comes with.

[Audrey Simmons]

This post is to make transactions structure as simplified as possible as I also find it a bit complicated when learning that aspect big bitcoin. and I said to my self that after I get it, I’ll make a post in the aspect to make it a bit simpler to understand to other new forum member as well.yis being spent)

Nice explanation, a good way to learn about Bitcoin and transactions is to spend Bitcoin, newbies are going to read lots of threads, and that will not help them learn how transactions are being created and concluded. My own advice is for newbies to be practical, buy Bitcoin, and spend the coins or transfer them to a different address, then follow up with whatever they've read online, people learn fast from practicalizing what they've studied.

[PremiumcryptoHub]

This post is to make transactions structure as simplified as possible as I also find it a bit complicated when learning that aspect big bitcoin. and I said to my self that after I get it, I’ll make a post in the aspect to make it a bit simpler to understand to other new forum member as well.yis being spent)

Nice explanation, a good way to learn about Bitcoin and transactions is to spend Bitcoin, newbies are going to read lots of threads, and that will not help them learn how transactions are being created and concluded. My own advice is for newbies to be practical, buy Bitcoin, and spend the coins or transfer them to a different address, then follow up with whatever they've read online, people learn fast from practicalizing what they've studied.

Yes, a good way to learn about Bitcoin and its transactions is to spend Bitcoin, because in my opinion, it is a very effective way to gain experience with the underlying technology of Bitcoin. Newbies will read a lot of threads but they may not understand how transactions are made and completed easily, but if they understand that Bitcoin is a digital currency and works without the control of any central bank, then spending the process of learning these processes by hand may help to increase the knowledge of newbies.

The main thing is that if they can learn about the benefits of real experience such as wallet setup, transaction fees and block chain tracking, then I think it will be easier for everyone to understand the Bitcoin transaction structure.

[Webutxo]

Understanding bitcoin transaction is not difficult to do as long as you have the necessary materials that shows the procedures from one step to the other, it does not also work in a same pattern with traditional system as we are used to Fiat, bitcoin transaction as secured and fast, safe and reliable.

People are used to their regular bank transaction and when you look at them, they are designed that way but under the hood, they don't operate like that because bank apps deals with accounts model and Bitcoin deals with utxo models, you need to spend your inputs to get another output while the bank app does not do all of this, their currency are not some kind of something that is like sat, they just work how do minus and plus and do balance carried down.

Any newbie interested in going for bitcoin most understand how the model works with Bitcoin, we can know it until we go for it and understand the procedure so that we can take advantage of every benefits bitcoin transaction comes with.

Explaining transaction for people sometimes is a hard job, the best way to understand Bitcoin is to do some transaction and test things thing. They are well understood better if you send and received transaction from your wallet and you become an expert in transaction understanding. By the time you have done, 1 2 and 3, you will become better. If you do some mistake and knows how to solve it, you become even mhch more better.