Bitcoin moves value the way the internet moves data.
Every transaction is a small packet of verifiable math that travels across a global network, settles itself, and never needs human approval.
In traditional finance, each transfer goes through layers of checks: banks, processors, regulators.
Bitcoin compresses all of that into code.
| Property | How It Works |
|---|---|
| ✅ Peer-to-peer | You broadcast directly to the network |
| ✅ Final | Once confirmed, no reversals or chargebacks |
| ✅ Transparent | Every move is publicly auditable |
| ✅ Neutral | The network treats all users equally |
| ✅ Always on | Runs nonstop, no business hours |
Reflection:
If money can settle itself, what happens to the cost of trust?
Every transfer is a small packet of information:
| Part | Function | Analogy |
|---|---|---|
| Inputs 📥 | The coins you're spending | The bills you hand over |
| Outputs 📤 | Where the coins go | The recipients' "accounts" |
| Fee 💰 | Payment to miners for processing | Network toll |
UTXO Logic:
Think of your wallet like a drawer of cash. You can't tear a $20 bill in half—you spend the whole note and get new change back.
Bitcoin works the same way: the network tracks unspent outputs instead of account balances.
There's no fixed fee. You're bidding for space in the next block.
Fees depend on data size + network demand, not on the amount sent.
Tip:
Pragmatists plan throughput—batch payments or schedule low-fee windows to reduce cost.
| Priority | Fee Range (sat/vB) | Est. Cost USD | Typical Wait |
|---|---|---|---|
| 🔵 High | 50+ | $5-15 | ~10 min |
| 🟡 Medium | 20-50 | $2-5 | ~30 min |
| 🟠 Low | 10-20 | $1-2 | ~1 h |
| 🔴 Economy | 1-10 | <$1 | Several h+ |
Each confirmation is a block layered on top of yours.
More layers = harder to rewrite.
| Confirmations | Risk Level | Typical Use |
|---|---|---|
| 0 | Pending / Reversible | Do not trust for value |
| 1-2 | Low Risk | Everyday small payments |
| 3-5 | Standard | Business transactions |
| 6+ | Practically irreversible | Large settlements, exchanges |
The Math:
To undo six confirmations, an attacker would need more power than the entire network—mathematically impossible in practice.
| Feature | On-Chain (Main Layer) | Lightning (Layer 2) |
|---|---|---|
| Speed | ~10 min | Instant |
| Fees | Variable | Near zero |
| Security | Maximum (final settlement) | Depends on channels |
| Ideal For | High-value storage or auditable payments | Daily use, micro-transactions |
| Analogy | Main power grid | Local circuit breaker |
Engineer's Choice:
Use on-chain for reliability, Lightning for speed—just as you'd balance main power vs. backup generators.
Watch Bitcoin move at light speed! Interactive demo showing instant settlement.
| ✅ | Double-check address integrity (use QR, not copy-paste) |
| ✅ | Prefer SegWit bc1 addresses to cut fees 30-40% |
| ✅ | Test small amounts before major transfers |
| ✅ | Confirm fee rates before sending |
| ✅ | Wait ≥ 3 confirmations for finality |
| ✅ | For frequent small payments, open a Lightning channel |
⚠️ Avoid:
Trusting 0-confirmation txs, rushing large sends, or exposing private keys during live demos.
Run real transactions on Bitcoin Testnet.
Steps:
You'll see inputs, outputs, and confirmations update live—exactly like mainnet.
Bitcoin transactions aren't magic—they're protocol-level guarantees.
You're not asking for permission to move money; you're sending verifiable proof that value changed hands, and the entire network agrees.
That reliability is why Bitcoin outperforms every legacy payment rail built on trust.
Select the correct answer:
Select the best answer:
Choose the best use case:
Answer all quiz questions correctly to unlock