# Transaction Flow

<figure><img src="/files/TSb71cMlXcFkMotSt9DS" alt=""><figcaption></figcaption></figure>

The transaction flow in an SPV wallet can be summarized as follows:

1. **Initiation**: Alice wants to pay Bob and requests to initiate a payment through Bob's SPV Wallet server.
2. **Transaction Construction**: Alice constructs a transaction based on the response from Bob's SPV Wallet server, signs it, and sends it along with source transactions and their Merkle paths.
3. **Validation**: Bob's SPV Wallet server inspects the source transactions and the payment transaction for validity, checking against the Block Headers Service.
4. **Broadcasting**: If valid, the SPV Wallet server broadcasts the transaction to ARC.
5. **Mining**: A block is mined, confirming the transaction.
6. **Final Confirmation**: ARC sends a callback to the SPV Wallet server, confirming the transaction has been mined into a block.

This transaction flow illustrates the efficiency and security of SPV wallets in facilitating peer-to-peer transactions.


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