Simple Bitcoin transaction

Consider a Bitcoin transaction where, James transfer 5 BTC his friend, Kevin in the network. 

Now, this transaction is broadcast to the Bitcoin Blockchain network, and the special nodes called Miners who takes up this transaction from the pool of unconfirmed transactions, validate it and adds it to their block.

Here, suppose Lisa and Robert are miners, they verify the transactions in the network and groups the verified transaction in a block and start competing to solving a complex mathematical puzzle called Proof-of-work.

If Lisa here solves the puzzle first, she broadcast the block to the entire network. The other miners validate the block and every node unanimously agrees to the current state of the ledger, each updating the record independently. Thus James and Kevin get a verification message that the transaction is completed.

The transaction thus becomes a part of the universal distributed ledger (or Blockchain). And, For her computational work, Lisa is rewarded with newly created Bitcoins (hence the term mining). The current reward for each block is 12.5 Bitcoins. 

“So the digital money is transferred from one person to another without the use of third parties we use in our conventional system. Isn’t that amazing?!”

Yet, Blockchain Technology, for all its virtue is not a new technology. 

Passably, it is an amalgamation of potent technologies in a new way.