Bitcoin Transactions, Blocks and Mining | Andheri, Mumbai
Bitcoin has no accounts, no balances, and no central server, yet it reliably tracks value across thousands of independent nodes.
Most introductory guides present Bitcoin through abstract wallet balances and running totals. In reality, Bitcoin operates as a graph of Unspent Transaction Outputs (UTXOs) governed by cryptographic locking scripts, peer-to-peer node validation, and game-theoretic mining incentives. Relying on wallet abstractions hides the mechanical reality of how state changes occur across a distributed network. In this session, we trace the full lifecycle of a transaction—from elliptic curves and address derivation to mempool dynamics, Merkle trees, and Nakamoto consensus—culminating in constructing and broadcasting a raw transaction directly onto the Bitcoin testnet.
AGENDA:
Cryptographic Foundations & Keys: Elliptic curve cryptography (secp256k1) and one-way hash functions transform private keys into public addresses, enabling ownership proofs without revealing secrets.
The UTXO Model & Testnet Execution: Unspent outputs replace account balances, requiring users to explicitly construct inputs, outputs, and signatures before broadcasting raw bytes to the testnet.
Node Distribution & Mempool Auctions: Independent nodes validate transaction rules and hold unconfirmed data in local mempools, operating as decentralized bidding floors for block inclusion.
Block Assembly & Merkle Integrity: Miners construct candidate blocks by compressing thousands of transactions into Merkle trees, ensuring efficient cryptographic verification of the entire ledger state.
Mining, Hashrate, & Nakamoto Consensus: Proof-of-work, dynamic difficulty adjustments, and the longest-chain rule resolve network timing conflicts to establish an unalterable chronological history.
Economics, ASIC Hardware, & Supply Caps: Block subsidies, halving events, transaction fees, and specialized mining infrastructure enforce programmatic token issuance toward the 21 million BTC limit.
WHO'S GUIDING
Led by the Bitshala Contributors. We are a community of Bitcoin developers and educators.
WHAT TO EXPECT
Difficulty: Beginner / Entry-Level Protocol Mechanics.
Format: Interactive 3-hour workshop combining protocol teardowns with a live testnet transaction exercise.
Setup: Bring a laptop.
IS THIS FOR YOU? Yes if...
You want to look past wallet user interfaces and inspect the actual data structures powering Bitcoin.
You prefer understanding protocol mechanics through cryptographic primitives rather than high-level financial summaries.
You learn best by building, signing, and broadcasting real data on an open test network.
You are curious about how open software achieves global synchronization without relying on a central authority.
Prior coding experience not required. A curious mind and a desire to look under the hood is.
Construct a raw transaction and trace its path to a mined block, and you understand the core architecture of trustless money.
About Bitshala
Bitshala is a Bitcoin-focused education initiative where we help developers, designers, and curious builders learn by doing. We run cohorts, clubs, workshops, a hackerspace, and community programs that make it easier for people to explore, contribute to, and build on Bitcoin. Our focus is on hands-on learning, proof-of-work, and growing alongside a community of people who care about open technology, design, and the future of money.
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