What Is a Transaction (TX)?
Here are some key points to understand about transactions:
- Transactions are recorded on a distributed ledger, which ensures transparency and immutability.
- Cryptography is used to encrypt transaction data and secure the ledger.
- Crypto transactions are decentralized, meaning no central authority oversees or controls them.
- Peers engage in transactions by using crypto wallets to send and receive funds.
- The transaction initiator transfers funds from their public address to another account.
- The sender requires the corresponding private key to authorize and complete a transaction.
- Transactions are encrypted before being broadcast on the distributed ledger.
- The transaction amount can be publicly viewed, but the sender’s identity remains anonymous.
- Multiple transactions can be grouped and added to the blockchain using blocks.
- Miners or validators are responsible for adding transaction blocks to the blockchain.
- The time it takes for a transaction to be recorded on the blockchain can vary based on the network and transaction fee.
- Transactions can be processed instantly or may take a few minutes to confirm.
- In cases of high network congestion, transactions may experience delays of a few hours.
- For confirmation and verification, the status of a transaction can be checked using a block explorer specific to the cryptocurrency used.
Understanding transactions is fundamental for engaging in cryptocurrency transfers and interacting with blockchain networks.