📌 a BlockChain Learning Blog # S3E2 ⚡ Basics of Bitcoin Transaction ⚡

Dear Community,

This is another blog post in the ongoing series of BlockChain Learning. #devdlearningblog . Todays blog is dedicated on basics of a bitcoin transaction.

📌 Bitcoin does not have account balance concept in deep core rather it works on UTXO concepts (Unspent Transaction Outputs)

image source

📌 In short if someone sends you a bitcoin on your bitcoin address that mean he is transferring the ownership and authorizing you to claim those bitcoin.

📌 Every authorization in its core is a script instruction or you can say some lines of code.

📌 When your friend send the bitcoin to your bitcoin address that time internally authorization claim is assigned to your address.

📌 When you tries to spend assigned UTXO that time you need to prove that you are a rightful owner of this assigned and validation part is done by your private key as authorization claim is assigned to your public key by sender.

👉 Bitcoin transaction script looks like below


scriptSig: <sig> <pubKey>
scriptPubKey: OP_DUP OP_HASH160 <pubKeyHash> OP_EQUALVERIFY OP_CHECKSIG

📌 Bitcoin Scripts are simple, compact, stack-based and processed left to right, Not Turing Complete (no loops)

📌 The whole script execute in a stack and claim is only valid if the end result comes our as TRUE.

⚡ Some Interesting Bitcoin Scripts ⚡

👉 Provably un-spendable or prunable outputs


scriptPubKey: OP_RETURN {zero or more ops}

OP_RETURN is a script opcode used to mark a transaction output as invalid. Since any outputs with OP_RETURN are provably unspendable, OP_RETURN outputs can be used to burn bitcoins.

👉 Anyone-can-spend outputs


scriptPubKey: {empty}
scriptSig: OP_TRUE

Output of stack will always True without any validation so anyone can claim and spend these bitcoins assigned to this output.

👉 Freezing funds until a time in the future


scriptPubKey: <expiry_time> OP_CHECKLOCKTIMEVERIFY OP_DROP OP_DUP OP_HASH160 <pubKeyHash> OP_EQUALVERIFY OP_CHECKSIG
scriptSig: <sig> <pubKey>

In such transaction the rightful owner can only spend this transaction when he will able to meet an additional condition for current time equals to expiry_time.

Hope this was an interesting read for you all & would have help you understand how things works under the hood. Leave a comment in case of any suggestion or questions.

#bitcoin #howto #blockchain

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