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The block chain provides Bitcoins public ledger, an ordered and timestamped record of transactions. This system is used to guard next to double spending and modification of previous transaction records.
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Each full node in the Bitcoin network independently stores a block chain containing lonely blocks validated by that node. similar to several nodes all have the thesame blocks in their block chain, they are considered to be in consensus. The validation rules these nodes follow to maintain consensus are called consensus rules. This section describes many of the consensus rules used by Bitcoin Core.
The illustration above shows a simplified bank account of a block chain. A block of one or more further transactions is collected into the transaction data part of a block. Copies of each transaction are hashed, and the hashes are then paired, hashed, paired again, and hashed once more until a single hash remains, the merkle root of a merkle tree.
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The merkle root is stored in the block header. Each block moreover stores the hash of the previous blocks header, chaining the blocks together. This ensures a transaction cannot be modified without modifying the block that archives it and every taking into consideration blocks.
Transactions are plus chained together. Bitcoin billfold software gives the tune that satoshis are sent from and to wallets, but bitcoins really influence from transaction to transaction. Each transaction spends the satoshis before traditional in one or more earlier transactions, fittingly the input of one transaction is the output of a previous transaction.
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A single transaction can make complex outputs, as would be the battle with sending to multipart addresses, but each output of a particular transaction can single-handedly be used as an input subsequently in the block chain. Any subsequent hint is a prohibited double spendan attempt to spend the thesame satoshis twice.
Outputs are tied to transaction identifiers (TXIDs), which are the hashes of signed transactions.
Because each output of a particular transaction can on your own be spent once, the outputs of every transactions included in the block chain can be categorized as either Unspent Transaction Outputs (UTXOs) or spent transaction outputs. For a payment to be valid, it must unaided use UTXOs as inputs.
Ignoring coinbase transactions (described later), if the value of a transactions outputs exceed its inputs, the transaction will be rejectedbut if the inputs exceed the value of the outputs, any difference in value may be claimed as a transaction press forward by the Bitcoin miner who creates the block containing that transaction. For example, in the illustration above, each transaction spends 10,000 satoshis fewer than it receives from its total inputs, effectively paying a 10,000 satoshi transaction fee.
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