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You get to say what happens to the funds if you can make the program return “TRUE. If you can’t, then chances are you don’t.

So, You do:

Your wallet software writes a little computer program for you and then sends it into the bitcoin network when you want to spend your money, here’s what. It effortlessly states towards the community: “Please run this little system I’ve simply offered you. Then please locate a scheduled program(“smart contract”? ) on the working platform with this particular ID in my situation. You just located” when you’ve done that, feed the output from my program into program. And this is a two action procedure: you offer your personal program that is little plus the output of this is given to your UTXO program that you would like to blow.

How you spend some money in Bitcoin would be to ask the working platform to operate a little computer system that you provide and feed the production of the system towards the “smart contract” that is keeping the funds you need to invest. Whenever you can get this to second system run effectively, you are free to invest the cash. In Bitcoin terminology, this program you provide is “scriptSig” in addition to UTXO program is “scriptPubKey”. Your objective is always to give a “scriptSig” whose production could be given into “scriptPubKey” to help make it get back “TRUE”

Just what exactly are these programs that are little? They’re really simple in the common case. The “UTXO program” just claims: “provide me personally with a signature that is digital demonstrates you own the key linked to the following Bitcoin target (and please additionally demonstrate that you understand the public key that corresponds to your bitcoin target)”.

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