Bitcoin Transaction and How It Affects Bitcoin Exchanges
Bitcoin transactions involve spending money which is thought of as Bitcoins inside a Bitcoin address and then getting some change back.
A transaction can be done as follows:
One issue remains same though- before we put into use this change, some transactions got sent that depend on the change in a bad way change and will never be confirmed.
This way, there is a sort of chain that can be created for all Bitcoins from the first mining transaction.
Sample Bitcoin core transaction :
When Bitcoin core does a transaction like this, it trusts that it will get the 9 BTC change back, and it will because it created this transaction itself, or at a very rare case, the whole transaction won’t confirm but nothing is lost. It can immediately convert 1 btc to inr in the successive transaction without waiting for or being confirmed because it knows where the coins are going to and it knows the transaction information in the network.
Effects of a wrong transaction :
If the transaction is changed in a bad way, Bitcoin core may end up trying to create a new transaction using the 1 btc to inr converter, but based on wrong input information. This is because the actual transaction ID and related data have changed in the blockchain.
Bitcoin exchanges can configure their first or most important Bitcoin node to no longer allow change, with zero confirmations, to be included in any Bitcoin transaction.