Cryptocurrency transactions work by transferring digital coins from one person or entity to another. When a transaction is initiated, the sender’s wallet has to identify which coins they are sending and the amount they wish to send. This information is then broadcasted to a public ledger, known as a blockchain.
Miners then collect pending transactions and try to solve complex mathematical problems in order to validate the transactions. If the miners can successfully solve the problem, they receive new coins as a reward and the transaction is marked as complete on the blockchain. After the transaction is verified, it is added to the blockchain and published to the whole network.