Steps of a Blockchain Transaction

Steps of a Blockchain Transaction >>> Introduction to Blockchain for Financial Services >>> 

 

Question 1

Use the following drag-and-drop quiz to arrange the steps of a blockchain transaction into the correct order. You may find it helpful to maximize the app window in order to complete this quiz.

You may check your answer and retry as many times as you wish within the app before submitting your final response for grading. You must receive a perfect score within the app in order to pass this quiz.

 

 

Bitcoin Transaction Steps

Step Num. Step Description
1 You open your preferred wallet app.
2 You create a new message specifying the amount of bitcoin you want to send, as well as the recipient’s address.
3 You use your private key to “sign” the message.
4 After double-checking the message contents, you broadcast the message to the network of computers running the full bitcoin blockchain.
5 The network verifies that your message represents a valid transaction (specifically, that you have the amount of bitcoin you want to spend, and that it was actually you who authorized the transaction).
6 Miners race to record new transactions into a block and solve the associated proof of work problem (specifically, to find a nonce that produces a block hash with the correct number of leading zeros).
7 A miner who finds a solution shares its proof of work with the other miners in the network. The other miners accept the block by beginning to work on the next block (which has to include the hash of the newly made block).
8 The winning miner receives a set quantity of new bitcoins as a reward.
9 After ~10 minutes, you and the seller each receive confirmation that the transaction went through. You receive your goods/services from the seller. Done deal!

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