How a bitcoin node is aware of the place the final transaction of my pockets is


Transactions do not truly include addresses.

A Bitcoin handle is absolutely extra like an bill reference quantity created by the supposed recipient of the cash.

The handle worth permits the senders pockets to assemble a transaction that comprises an output for that recipient. The output has a bitcoin script, a small program written in Bitcoin scripting language. This script is usually referred to as the locking script and it ensures solely the recipient can later spend that cash. The script is created from the quantity we name an handle.

So different nodes do not ever see precise addresses and need not verify output addresses. They do not actually care about outputs though they do hold an inventory of unspent outputs (UTXOs). It’s only a while later (if ever) when that output is reference as an enter to a later transaction that nodes will verify the unlocking script produces the precise values to fulfill the locking script.


The Bitcoin community would not hold observe of your whole funds or stability. Bitcoin nodes neither know or care about how a lot cash you have got. They solely care about whether or not the cash being spent are real. Identical to the proprietor of a espresso store would not have to know your financial institution stability they simply verify the cash and banknotes you gave them feel and look actual.

Bitcoin nodes verify that the transaction inputs aren’t already spent. Every enter needs to be a reference to a UTXO from some prior transaction.

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