The act of exchanging cryptocurrencies on a blockchain.
What Is a Transaction (TX)?
Every transaction is recorded on the distributed ledger technology.
Cryptography is the name of the process by which transaction data and the ledger are encrypted. Crypto transactions are decentralized — meaning that, unlike with fiat money, no central bank or authority regulates or controls the transaction. Peers engage in transactions with one another by using crypto wallets.
The individual who starts the transaction transfers the funds from the public address to another account.
For the transaction to successfully take place, the private key is required.
The transactions made are encrypted before they are broadcasted on the distributed ledger.
The amount of the transaction can be publicly viewed but the identity of the sender remains anonymous.
Multiple transactions can be added at once to the blockchain using blocks.
The people who add blocks of the transaction are typically called miners or validators.
The time taken for a transaction to be recorded on the blockchain can vary depending on the network being used, and the size of the transaction fee that was paid.
A transaction can be instant, or it can take up to a few minutes for the transaction to go through.
If traffic is exceptionally high, the transaction could even take a few hours to show up.
When in doubt whether the transaction has been successfully made, the status of the transaction on the distributed ledger can be checked by using the block explorer of the coin sent.