Transactions in Action

Step 1: The First Transaction

Guide students through to the tracking board. Assign four students to be the owners of each of the four-colored wallets. Explain their responsibility is to sign or not sign (approve, not approve) transactions.

If you are using the physical method, hand out their respective color "wallets" (papers). Also give them the corresponding number of poker chips (or coins, or whatever you have decided to use for sats).

Explain to the rest of the class they each represent miners or node runners. Their responsibility is to agree or not agree whether a transaction is valid. They decide to accept or reject transactions. For the game, select one of them to be responsible for updating the tracking board.

Now walk the class through the first transaction step by step. Tell them a story of how RED bought a coffee from BLUE for 5 sats.

Ask "RED, do you agree to pay 5 sats to BLUE?"

Keep narrating. Your goal is to get RED to agree to send money to BLUE. When they do agree, tell them to say the following out loud: "I, RED, sign this transaction."

"NODES and MINERS, is the transaction RED SENDS 5 SATS TO BLUE valid?"

1. Does RED have 5 sats?
2. Did RED sign the transaction?

If both conditions are met, instruct the tracker to update the table. Ensure they update the total column too. This will always be 21.

If you are using the physical method, ask one of the miners to move 5 sats (chips) from the red wallet (paper) to the blue wallet (paper).

Step 2: The Second Transaction

Continue narrating. This time BLUE is buying something (perhaps a book) from ORANGE for 7 sats.

Walk the class through the steps like before.

"BLUE, do you agree to pay 7 sats to ORANGE?"

"NODES and MINERS, is the transaction BLUE SENDS 7 SATS TO ORANGE valid?"

1. Does BLUE have 7 sats?
2. Did BLUE sign the transaction?

If both conditions are met, instruct the tracker to update the table. Ensure they update the total column too.

If you are using the physical method, one of the miners moves 7 sats (chips) from the blue wallet (paper) to the orange wallet (paper).

Step 3: Not Enough Sats

Continue narrating. This time GREEN is buying something (perhaps a meal) from RED for 10 sats.

Walk the class through the steps like before.

"GREEN, do you agree to pay 10 sats to RED?"

"NODES and MINERS, is the transaction GREEN SENDS 10 SATS TO RED valid?"

1. Does GREEN have 10 sats?
2. Did GREEN sign the transaction?

The node runners and miners should NOT agree the transaction is valid because GREEN does not have enough sats.

"NODES and MINERS, will you process this transaction?"

When they say "no", instruct the tracker to update Round 3 with no changes from Round 2.

Step 4: Transaction Not Signed

Continue narrating. This time, there is no purchasing story. ORANGE is trying to get GREEN to send him 5 sats.

"GREEN, do you agree to pay 5 sats to ORANGE?"

GREEN should say "no".

"NODES and MINERS, is the transaction GREEN SENDS 5 SATS TO ORANGE valid?"

1. Does GREEN have 5 sats?
2. Did GREEN sign the transaction?

The node runners and miners should NOT agree the transaction is valid because GREEN never signed (approved) it.

"NODES and MINERS, will you process this transaction?"

When they say "no", instruct the tracker to update Round 4 with no changes from Round 3.

Step 5: Invalid Wallet

Continue narrating. ORANGE is still being sneaky. If he cannot get sats from another wallet, perhaps he can trick the network into updating his wallet with fictional sats.

Tell the class that ORANGE broadcasts the following transaction to the network, "PURPLE SENDS 4 SATS TO ORANGE".

"NODES and MINERS, is the transaction valid?"

No one can create sats from nothing. They must come from an existing and valid wallet.

The node runners and miners should NOT agree the transaction is valid because PURPLE is not a real wallet.

"NODES and MINERS, will you process this transaction?"

When they say "no", instruct the tracker to update Round 5 with no changes from Round 4.