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Building Blocks: The Transaction’s Journey to the Blockchain

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IN THIS CHAPTER

Understanding the cryptocurrency network

Defining different types of nodes on the network

Learning about transaction fees and change addresses

Requesting that the blockchain adds your transaction

Verifying transactions and blocks of transactions

At one end, you’ve got your wallet or your node software. At the other, there’s the blockchain. In between is the network of peer-to-peer nodes and miners creating blocks in the chain. How does a transaction that you set up on your wallet program find its way into the blockchain?

In this chapter, we look at how a transaction leaves your wallet and ends up in the blockchain and the miner’s role in that process. As an example, we use Bitcoin, the first blockchain-based cryptocurrency. Other cryptocurrencies use a similar process, to varying degrees. Each has its own particulars, but understanding how Bitcoin works will give you a really good foundation.

Cryptocurrency Mining For Dummies

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