UTXOs
Bitcoin uses unspent transaction outputs (UTXOs). A transaction consumes existing outputs as inputs and creates new outputs that can later be spent.
Inputs and outputs
Inputs reference previous outputs. Outputs specify amounts and spending conditions. The difference between total inputs and outputs contributes to the transaction fee.
Confirmation
After a transaction is broadcast, miners can include it in a block. Additional blocks add confirmations and generally increase confidence that the transaction will remain part of the accepted chain.
Public traceability
The blockchain preserves transaction history, allowing observers to follow movements between outputs. Attribution to a real-world person usually requires additional information beyond the chain itself.