Bitcoin Whiteboard Tuesday – The Path from “Send” to “Receive”

Today’s topic is the path of Bitcoin from “send” to “receive”. In this episode, we’re going to go over exactly what happens to a single Bitcoin from the moment you hit the “send” button in your wallet until it’s received on the other end.

Hopefully, once we finish this lesson, you’ll have a good understanding of how the Bitcoin network works and what’s the role of each specific player in the Bitcoin ecosystem. So let’s get started!

The path from send to receive has 3 parts: Signing, broadcasting and confirming. Let’s start with the first part – signing.

When I hit the “send” button in my Bitcoin wallet, what I’m actually doing is telling my wallet:

Hey wallet, I want to send 1 Bitcoin to my friend Steve. Here is Steve’s Bitcoin address.”

The wallet, in response, creates a transaction message containing information about me, the sender (Steve), the recipient and the amount being sent (in this case, one Bitcoin).

Afterward, the wallet produces a…


Source: CoinFire

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