Script Execution

Script execution refers to the process where a blockchain virtual machine evaluates the code attached to a transaction to determine if it is valid. In the UTXO model, this often involves a stack-based language that checks if the signature matches the public key associated with the input.

If the script returns true, the transaction is accepted; otherwise, it is rejected. This programmable logic allows for more complex financial instruments like multisig wallets or timelocked contracts.

It is the engine that enforces the rules of the protocol during every transaction attempt.