Bitcoin uses a peer-to-peer network where users' wallets connect and disconnect dynamically. Transactions of bitcoin ownership are recorded on the blockchain through cryptographically signed transactions. When a user transfers bitcoin to another user, the transaction of the new ownership is recorded on the blockchain. The blockchain contains a complete record of all bitcoin and their owners through all transactions.

1. Bitcoin Technology
Fundamentals
Amitesh Raikwar
PhD Scholar
November
2021

2. Bitcoin Technology
Fundamentals
Tutorial – Bitcoin Network

3. Bitcoin Network
1. P2P (Peer to Peer).
2. Protocol – cryptographic.
3. Wallet = software client.
4. Bitcoins are sent as digitally signed transactions.
5. Transactions are stored in a blockchain.
6. Consensus is arrived at and transations are stored (‘mining’).
7. 2008 – white paper by Satoshi Nakamoto (person/persons) defined
the Bitcoin protocol.
8. Software is open source – free to develop.

4. 4

5. Bitcoin Network Infrastructure
1. Network is P2P (Peer to Peer) – comprised of all Bitcoin clients.
2. No formal structure.
3. Wallet holders comprised of multiple devices :-
• Desktops
• Laptops
• Tablets
• Phones
4. Ergo, devices can connect/disconnect – the network is dynamic
5. Wallets load and verify transactions (blocks) upon reconnect.

6. Bitcoin Network Transactions
1. Bitcoin signed transactions.
2. An owner of Bitcoin is listed on the blockchain as the ‘owner’ of
the transaction.
3. When an owner transfers Bitcoins to other parties, the ownership
is recorded as a transaction on the blockchain.
4. Effectively, the owner ‘signs it over’.
5. The new owner is now listed on the blockchain as the owner.
6. The blockchain contains a complete record of all Bitcoins and
owners. Also of all transactions.

7. Bitcoin Network Transactions
7. Individual Bitcoins aren’t recorded separately.(It wouldn’t be
practical)
8. Therefore, Bitcoin transactions can contain several Bitcoins (or
parts thereof)
9. Transactions are combinations of inputs/outputs:-
• Inputs = payments (could be a single large amounts or
multiple small amounts).
• Outputs = change (if any) and payments.
10. There can be transaction fees.

8. THANK
YOU!
Amitesh
Raikwar
Phone
+91-9893093846
Email
amiteshraikwar@gmail.com