A signed data structure that spends existing outputs and creates new ones.
Transaction meaning
A Bitcoin transaction does not edit an account balance. It consumes one or more unspent outputs as inputs and creates new outputs with fresh spending conditions. Except for the special coinbase transaction, input value must cover output value.
How it works in Bitcoin
Wallet software selects UTXOs, creates recipient and often change outputs, sets a fee, and gathers the required signatures. Nodes verify the structure and spending conditions before relaying it or accepting it in a block.
A simple example
To pay 70,000 sats from a 100,000-sat UTXO, a wallet might create 70,000 sats for the recipient, 28,000 sats as change, and leave 2,000 sats as the miner fee.
Why Transaction matters
Transaction terms matter whenever bitcoin moves. Understanding them reduces mistakes involving fees, confirmation status, change outputs and irreversible destinations.
What people often get wrong
Confirmed Bitcoin transactions are generally irreversible. Verify the network, destination, amount, and fee before signing.
Quick checks before using the term
- Is the transaction only broadcast or already confirmed?
- Which outputs and fee are being created?
- Can wallet policy replace or delay it?
Apply these questions to the concrete example above. A precise answer is more useful than repeating the definition without naming the actor, rule or failure path.
Check the primary reference
This entry is written in plain English, but the technical source is available when you need exact protocol detail.
Bitcoin Developer Guide: Transactions ↗