BTC Diagrams
Bitcoin Explained
Visually
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How It Works
Transaction Lifecycle
Step-by-step flow of a Bitcoin transaction from creation to settlement.
Bitcoin Transaction Lifecycle
1
CREATE
User creates
transaction in
wallet app
2
SIGN
Private key
signs to prove
ownership
3
BROADCAST
TX sent to
Bitcoin network
nodes
4
MEMPOOL
Waits in
mempool
unconfirmed
5. MINING
Miners select TX from mempool
and include in valid block
6. CONFIRMED
Nodes add block
to blockchain
1 confirmation
7. SETTLED
More blocks added
6+ confirmations
~1 hour for 6 confirmations
~10 min per block
Higher fees = priority inclusion
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