BTC Diagrams
Bitcoin Explained
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How It Works
How Bitcoin Works
The journey of a Bitcoin transaction from sender to receiver.
How Bitcoin Works
Alice
(Sender)
Signs TX
Transaction
45,000 sats
+ Fee
Broadcast
Bitcoin
Network
(Nodes + Miners)
Confirmed
Bob
(Receiver)
1. Create, Sign, & Broadcast
Alice creates a transaction,
signs with her private key,
and broadcasts to the network.
2. Verify & Mine
Nodes verify signature & TX,
miners add to blockchain
3. Receive
Bob receives Bitcoin
after confirmations
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Wallet Types Comparison