How cryptocurrency transactions work

Cryptocurrency transactions denote the transfer of funds from a sender to a receiver. A transaction is a message which has the destination and source addresses, and the amount to be transferred (plus some other less interesting details). In addition, each transaction has a hash value of the previous transaction, which is used to ensure the integrity of the transaction. Every transaction is signed (encrypted) using the sender’s private key. It is then broadcast to the cryptocurrency network, where it is verified and confirmed using the corresponding public key before being added to the ledger as an accepted transaction. The amount to be sent is known, but the sender’s and receiver’s personal details remain confidential.