A transaction is when data is sent to and from one bitcoin address to another. Just like financial transactions where you send money from one person to another, in bitcoin you do the same thing by sending data (bitcoins) to each other. Bitcoins have value because it’s based on the properties of mathematics, rather than relying on physical properties (like gold and silver) or trust in central authorities, like fiat currencies.


A piece of binary data that describes how bitcoins are moved from one owner to another. Transactions are stored in the blockchain . Every transaction (except for coinbase transactions) has a reference to one or more previous transactions (inputs) and one or more rules on how to spend these bitcoins further (outputs).


Malone, J.A (2015). Glossary of Bitcoin Terms and Definitions. United States: Lulu Press, Inc

The signed data package that stores a message to be sent from an externally owned account. Simply put, a transaction describes a transfer of information from an EOA to another EOA or a contract account.


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