Bitcoin has a weired representation for the target encoded into field
nBits of each block header
The target value is the limit that a miner need to find a lower block hash than in a PoW
- The target is set so that a block is mined roughly every 10 minutes
- The initial target was set as
which can be checked from here
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A transaction is a transfer of value that is broadcast to the network and collected into blocks by miners.
A transaction typically references a previous transaction output to new transaction inputs. The bitcoin input values are mapped to the bitcoin output values.
Bitcoin uses a counter intuitive UTXO (Unspent transaction output) model unlike traditional accounting models where old coins are destroyed and new coins are created for each transaction.
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