Bitcoin cryptocurrency transaction: how the whole process takes place

Bitcoin was created as an electronic payment system based on digital money consisting of a chain of signatures. It is subject to its own transaction rules, so whether you are going to receive a payment to your personal wallet, accept a cryptocurrency payment on a website, or send a payment, you need to have an understanding of how its transactions work.

Each owner transfers a coin to the next by digitally signing the hash of the previous transaction, which is added to the end of the coin. When in doubt, the payee can verify the signatures to confirm the chain of ownership.

Bitcoin transactions are email-like messages that are digitally signed using cryptography and verified on the bitcoin network. All bitcoin transactions are public and can be found in a digital registry called a blockchain. In order to avoid leaving a digital footprint you can always mine yourself using the best crypto mining hosting service.

Transaction timing

Transaction times vary depending on the workload across the entire blockchain network. The average time per transaction ranges from twenty minutes to an hour, but when the network is overloaded, the transaction time increases many times over.

Sometimes the network reaches peak moments, at which the average transaction volume in blocks gathers gigantic momentum and the blocks themselves increase to the limit. In order to anticipate such moments, special graphs have been developed that show the increase in the growth of trillions of hashes produced within the network every second.

How do I check a transaction?

You can track your bitcoin transaction online using the public resources and Their main advantage is the absence of registration.

In order to determine the number of transactions for a single transaction you need to:

  • go to the selected site of the public resource;
  • enter into the search line the combination of the hash operation you need.

Then you will be able to see all the information about the current status of the block.

You need to use profile platforms like to conduct transactions. The distinctive feature of such resources is that sellers have the ability to save their keys. One should keep in mind that this guarantees the approval of the transaction only on the service and not in the global network.

Approved and suspended transactions

Transaction approval is the moment of merging of transactions in the found block. One block includes one approval, and when the number of such blocks is six or more, the transaction becomes fully approved. This mechanism is specifically designed to prevent replay of the same bitcoins. If a replay is attempted, standard bitcoin mining software will display the transaction as unapproved and leave it in that state until six new confirmations are triggered.

Internet resources that accept bitcoin as a means of payment are empowered to set a limit on the number of blocks needed to approve a transaction. Since fraudsters are not able to collect more than ten percent of the network’s hash rate to spoof transactions, six attempts reduce the probability of hacking to 0.1% – this is quite enough for guaranteed protection of the system. Therefore, the meaning of a limit of 6 transactions is quite obvious.

Transaction fees

A nice perk of the Bitcoin network is that the miner is endowed with the ability to choose the commission fee. The speed of transaction confirmation depends on the size of the payment – the more you pay, the faster the payment will go through. In addition, the more funds that you are going to transfer, the higher will be your status in the network. It’s worth remembering that in order to confirm the transaction you should pay a commission of not less than 0.0002 BTS to the system.

In the bitcoin blockchain system, validation priority is related to the maximum amount of remuneration for miners in the general bitcoin network, so especially thrifty miners will have to wait several days for confirmation.

How do you set the commission so you don’t get hung up?

The main paradox is that the amount of bitcoins in a transaction does not affect the commission payable, instead it is affected by the size of the transaction in Bytes. This is because the transaction engine, like any other program, can have its weight in Bytes, and thus is an alimentary script. Since the weight of the script affects its processing speed, miners have problems processing some transactions.

Nevertheless, there is a recommended commission value that will allow you to confirm the transaction faster:

  1. At slow priority 0.0003438 BTC (10% probability);
  2. At standard priority 0.000405 BTC (50% probability);
  3. At medium priority 0.00108 BTC (55% probability);
  4. At high priority 0.0018 BTC (90% probability).

Transaction probability expressed as a percentage is calculated for the time interval which is necessary to confirm the transaction from 0 to 25 minutes.

Is it worth using bitcoin transactions?

Bitcoin is becoming increasingly popular – and as the number of its users increases, network congestion becomes inevitable – transactions that do not have time to process become queued up, and transfer times inevitably increase.

You should also keep in mind that bitcoin does not have a single control center – this means that if the sender makes a mistake with the address, he will not be able to cancel the transaction and return the funds. Nevertheless, bitcoin transactions have advantages, such as the independence of transaction fees from the distance to which the transfer must be made. So the question about the relevance of bitcoin transactions is more about the use of bitcoin in general.

If you want to start accepting payments in bitcoins and other cryptocurrencies on your website, online store or app, we provide an opportunity to connect reliable and convenient cryptoprocessing for any online business. If you have any questions you can contact our support.