What really happens when Bob transfers 1 ๐๐“๐‚ to Alice on blockchain?

The diagram below shows the detail.

๐Ÿ”ธ Step 0 โ€“ Bob wants to transfer 1 BTC to Alice. He initiates the transfer in his wallet.

๐Ÿ”ธ Steps 1 and 2 โ€“ A transaction A is created with Aliceโ€™s address. Bob then ๐ฌ๐ข๐ ๐ง๐ฌ the transaction with his private key.

๐Ÿ”ธ Step 3 โ€“ The signed transaction A is put into ๐ฆ๐ž๐ฆ๐จ๐ซ๐ฒ ๐ฉ๐จ๐จ๐ฅ, together with other transactions from other people.

๐Ÿ”ธ Step 4 โ€“ The miners actively pick transactions to work on. In our example, A is picked by both miner A and miner B, and both miners generate a block that contains transaction A. The miners then need to solve a maths problem which consumes a lot of ๐œ๐จ๐ฆ๐ฉ๐ฎ๐ญ๐ข๐ง๐  ๐ซ๐ž๐ฌ๐จ๐ฎ๐ซ๐œ๐ž๐ฌ.

๐Ÿ”ธ Step 5 โ€“ Miner A solves the problem first and its block gets accepted and added to the blockchain as a new block. A new block is created ๐ž๐ฏ๐ž๐ซ๐ฒ 10 ๐ฆ๐ข๐ง๐ฎ๐ญ๐ž๐ฌ.

๐Ÿ”ธ Steps 6 and 7 โ€“ Miner A gets ๐ซ๐ž๐ฐ๐š๐ซ๐๐ž๐ by the work to solve the maths problem (Proof-of-Work). Alice now gets 1 BTC in her wallet.

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