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What is a transaction

A transaction is an operation that transfers a crypto asset between users in a blockchain network.

Every transaction is recorded in the blockchain and becomes part of the permanent transaction history.

A transaction may also represent interaction with a smart contract. In general, any interaction between a user and the blockchain can be considered a transaction.

Transaction explained simply​

In simple terms, a transaction is the transfer of cryptocurrency from one user to another.

How a transaction works​

A typical transaction follows these steps:

  1. a user creates a transaction
  2. the transaction is signed using a private key
  3. the transaction is broadcast to the network
  4. miners or validators process the transaction
  5. the transaction is included in a block

Structure of a transaction​

A typical blockchain transaction includes:

  • sender address
  • recipient address
  • transfer amount
  • transaction fee

Example of a transaction​

When a user sends Bitcoin to another user, a transaction is created and later confirmed by the network. A blockchain explorer lets the user look up its status, fee, and inclusion in a block.

Where transactions are used​

Transactions are used in:

FAQ​

What is a blockchain transaction?​

It is a record of a cryptocurrency transfer or interaction within a blockchain network.

Can a transaction be canceled?​

No. Once confirmed, a transaction becomes part of the blockchain permanently.

How long does a transaction take?​

Transaction time depends on the blockchain network and its current load.