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1.5 MB
Extraction Summary
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People
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Organizations
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Quotes
Document Information
Type:
Presentation slide / educational infographic
File Size:
1.5 MB
Summary
This document is a Goldman Sachs presentation slide titled 'How Do Miners Process Individual Transactions?' produced for the House Oversight Committee (indicated by the Bates stamp). It uses a hypothetical scenario involving 'Bob' and 'Alice' to explain the technical process of Bitcoin transactions, mining validation, and blockchain ledger recording. The document outlines the steps of initiating a transaction, miner verification, and block addition, noting the 12.5 BTC mining reward.
Organizations (4)
| Name | Type | Context |
|---|---|---|
| Goldman Sachs |
Logo in top right corner
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| Investment Management Division |
Listed in header
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| Investment Strategy Group |
Listed in footer as source
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| House Oversight Committee |
Implied by Bates stamp 'HOUSE_OVERSIGHT'
|
Key Quotes (3)
"Consensus transaction validation creates a book of record for all transactions that have ever occurred."Source
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Quote #1
"Transaction processing typically take 10-20 minutes, but can take up to 18 hours if the network is congested."Source
HOUSE_OVERSIGHT_025670.jpg
Quote #2
"Transactions may only occur if they are supported by evidence from previous transactions."Source
HOUSE_OVERSIGHT_025670.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (1,710 characters)
Investment Management Division | Goldman Sachs
How Do Miners Process Individual Transactions?
How Do Miners Process Individual Transactions?
Illustrative Schematic of a Bitcoin Transaction
Step 1: Bob wants to pay Alice 0.5 BTC
Bob [icon] -> Alice [icon]
Previous transaction in which Bob was paid 1 BTC -> New transaction
Previous transaction in which Bob was paid 1 BTC -> New transaction
1) Before sending any bitcoins, Bob must hold bitcoins in his wallet from a previous transaction (or by solving a block to earn the mining reward).
2) Bob creates a new transaction in which he pays 0.5 BTC (of his 1 BTC) to Alice.
3) Bob broadcasts this transaction to the network for validation and inclusion in the blockchain.
2) Bob creates a new transaction in which he pays 0.5 BTC (of his 1 BTC) to Alice.
3) Bob broadcasts this transaction to the network for validation and inclusion in the blockchain.
Step 2: Miners Verify the Transfer Request and add it to the next block
Miner B [icon]
Miner A [icon]
Miner C [icon]
Miner A [icon]
Miner C [icon]
[Flowchart text repeated for miners]:
Bob owns 1BTC
Bob wants to pay Alice 0.5BTC
Does Bob have 0.5BTC??
Yes!
Record Bob's 0.5BTC Transfer to Alice
Bob owns 1BTC
Bob wants to pay Alice 0.5BTC
Does Bob have 0.5BTC??
Yes!
Record Bob's 0.5BTC Transfer to Alice
Step 3: Block Containing Bob and Alice's Transaction is Added to the Blockchain
[Diagram of blockchain blocks]
1) Miner B happens to be the first to solve this block and adds it to the blockchain. Miner B collects 12.5-bitcoin reward.
2) If Bob's transaction is included the block, Alice becomes the owner of 0.5 BTC, which will register in her wallet.
2) If Bob's transaction is included the block, Alice becomes the owner of 0.5 BTC, which will register in her wallet.
■ Consensus transaction validation creates a book of record for all transactions that have ever occurred.
– Transactions may only occur if they are supported by evidence from previous transactions.
– To send bitcoins, an owner’s wallet uses its private key to prove ownership of the referenced bitcoins.
■ Transaction processing typically take 10-20 minutes, but can take up to 18 hours if the network is congested.
– Transactions may only occur if they are supported by evidence from previous transactions.
– To send bitcoins, an owner’s wallet uses its private key to prove ownership of the referenced bitcoins.
■ Transaction processing typically take 10-20 minutes, but can take up to 18 hours if the network is congested.
Source: Investment Strategy Group.
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