Transaction (TX)

Understanding Transaction (TX)

A transaction (TX) is the process of recording each instance of activity on the distributed ledger technology.

The use of cryptography ensures that transaction data and the ledger are encrypted.

Crypto transactions are decentralized, unlike traditional currency, and are not regulated or controlled by any central bank or authority.

Peers engage in transactions by utilizing crypto wallets.

When initiating a transaction, an individual transfers funds from a public address to another account.

A successful transaction requires the use of a private key.

Transactions are encrypted before being broadcasted on the distributed ledger.

The transaction amount can be publicly viewed, while the sender’s identity remains anonymous.

Blocks allow for multiple transactions to be added to the blockchain simultaneously.

Miners or validators are responsible for adding blocks to the transaction.

The time it takes for a transaction to be recorded on the blockchain can vary depending on the network and the size of the transaction fee.

A transaction can be instant or may take a few minutes to process.

In cases of high traffic, it may take a few hours for the transaction to appear.

To check the status of a transaction on the distributed ledger, one can use the block explorer of the coin sent.