Addresses

Transactions do not truly include addresses.

A Bitcoin tackle is actually extra like an bill reference quantity created by the meant recipient of the cash.

The tackle worth permits the senders pockets to assemble a transaction that accommodates an output for that recipient. The output has a bitcoin script, a small program written in Bitcoin scripting language. This script is usually referred to as the locking script and it ensures solely the recipient can later spend that cash. The script is created from the quantity we name an tackle.

So different nodes do not ever see precise addresses and need not test output addresses. They do not actually care about outputs though they do preserve a listing of unspent outputs (UTXOs). It is just a while later (if ever) when that output is reference as an enter to a later transaction that nodes will test the unlocking script produces the best values to fulfill the locking script.

Funds

The Bitcoin community would not preserve monitor of your complete funds or steadiness. Bitcoin nodes neither know or care about how a lot cash you could have. They solely care about whether or not the cash being spent are real. Similar to the proprietor of a espresso store would not have to know your financial institution steadiness they simply test the cash and banknotes you gave them feel and look actual.

Bitcoin nodes test that the transaction inputs should not already spent. Every enter ought to be a reference to a UTXO from some prior transaction.