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What is a transaction?
What is a transaction?

Definition of the transaction

Alex avatar
Written by Alex
Updated over a week ago

A transaction in the context of cryptocurrencies and blockchain refers to the transfer of digital assets or data between two parties on a decentralized network. It involves the exchange or movement of tokens, coins, or information from one address to another.

Key components of a transaction include:

  • Sender: The party initiating the transaction, often referred to as the sender or originator, who owns the assets or information being transferred.

  • Receiver: The recipient or destination address where the assets or data are sent.

  • Amount: The quantity or value of digital assets being transferred.

  • Transaction ID: A unique identifier assigned to each transaction on the blockchain, allowing it to be tracked and verified.

Transactions are recorded and stored on the blockchain ledger, providing a transparent and immutable record of all activities on the network. They can involve various actions beyond simple asset transfers, including interactions with smart contracts, token swaps, or data updates, depending on the capabilities of the blockchain platform.

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