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Figure 2-3. Transaction as Double-Entry Bookkeeping The transaction also contains proof of ownership for each amount of bitcoin (inputs) whose value is transferred, in the form of a digital signature from the owner, which can be independently validated by anyone. In bitcoin terms, “spending” is signing a trans‐ action which transfers value from a previous transaction over to a new owner identified by a bitcoin address. Transactions move value from transaction inputs to transaction out‐ puts. An input is where the coin value is coming from, usually a previous transaction’s output. A transaction output assigns a new owner to the value by associating it with a key. The destination key is called an encumbrance. It imposes a requirement for a signature for the funds to be redeemed in future transactions. Outputs from one transaction can be used as inputs in a new transaction, thus creating a chain of ownership as the value is moved from address to address. Bitcoin Transactions | 19PDF Image | Mastering Bitcoin
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