Bitcoin transaction validation is the process used to verify the authenticity and accuracy of a transaction before it is added to a blockchain. This process is done through a decentralized network of computers that collectively agree on the validity of each transaction.
The process begins when a Bitcoin transaction enters the network. The transaction is then broadcast across the network, and the computers of miners begin verifying its validity. The process starts with miners searching for valid transactions and adding them to a block in the network.
A block consists of a set of transactions, and miners must verify each transaction in the block. To do this, miners use specialized hardware to solve various mathematical puzzles, verifying the transactions. Once these puzzles have been solved and the transactions verified, miners then broadcast their findings to all bitcoin nodes connected to the network.
If a majority of the nodes agree to the miner’s findings, then the transaction is considered confirmed and added to the blockchain. Through this process, Bitcoin transactions are able to maintain a high degree of trust and integrity. This process combined with the transparency of blockchain allows users to know the true identity of who they are sending and receiving Bitcoin from, through the use of Public-Key Cryptography.
This level of trust and transparency adds to the safety and security of Bitcoin, as users have greater confidence that their digital assets are safe, secure, and protected against fraud and theft.