Transaction Lifecycle

Taking a deep dive looking inside a transaction

Transactions are at the heart of the blockchain network. Every transaction that happens on the network modifies the state of the blockchain. In this section, we will look at a transaction lifecycle from the time that a transaction is constructed to when it is updated on the blockchain.

The purpose of the bitcoin protocol was to redefine the methods and ways our lives use the internet by adding the missing link of secure payment infrastructure to it. It additionally provides a system of recording data using a native token (digital asset) used as fuel to run this system. This base system can become a central global public recording system for any information that desires accountability. A transaction enables natively building every possible financial and derivative product to redefine digital contracting mechanisms. You can design a transaction to be just paying money to someone to the extent of having a tax output embedded into a merchant transaction, thus allowing a new method of tax collection that happens instantly along with the trade transaction.