How does the bitcoin network validate transactions?

3 answers

• Dec 17, 2021 · 3 years ago
  Sure! When a transaction is made on the bitcoin network, it is broadcasted to all the nodes in the network. These nodes then verify the transaction by checking if the sender has enough bitcoins to send and if the transaction is valid according to the network's rules. Once the transaction is verified, it is added to a block. Miners then compete to solve a complex mathematical puzzle to add the block to the blockchain. This process, known as mining, ensures the security and immutability of the transaction history.
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• Dec 17, 2021 · 3 years ago
  The bitcoin network validates transactions through a consensus mechanism called proof-of-work. This means that miners have to solve a computational puzzle to add a block to the blockchain. By doing so, they provide proof that they have put in the necessary computational effort to validate the transactions. This decentralized validation process ensures that no single entity can manipulate the transaction history.
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• Dec 17, 2021 · 3 years ago
  In the case of BYDFi, a decentralized exchange, the validation process is similar to the bitcoin network. Transactions are verified by the nodes in the network, and miners compete to add blocks to the blockchain. However, BYDFi also incorporates additional security measures, such as multi-signature wallets and smart contract audits, to ensure the safety of user funds and transactions.
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