A Bitcoin transaction refers to the transfer of value between Bitcoin wallets. Each transaction records the movement of a certain amount of Bitcoin from a sender to a recipient. When a transaction is initiated, it is broadcasted to the Bitcoin network and verified by miners.

They use complex algorithms to confirm the legitimacy of the transaction, ensuring that the sender has enough Bitcoin and that the same Bitcoin hasn’t been spent elsewhere. Once verified, the transaction is added to a public ledger called the blockchain.

This ledger is accessible to anyone, providing transparency and security. Each transaction contains a unique identifier, the addresses of the sender and receiver, and the amount of Bitcoin being transferred.

Through this process, Bitcoin enables peer-to-peer transactions without the need for intermediaries like banks. This characteristic makes it an appealing option for users seeking more control over their finances.