A transaction in cryptocurrency is the transfer of crypto from one wallet to another.
This also includes the mining of new coins, and transactions are recorded in blocks on the blockchain. Recording transactions accurately is crucial in crypto accounting.
In cryptocurrency terminology, a transaction represents the transfer of cryptocurrency units between two digital wallets. Each transaction is digitally signed for security and must be confirmed via a process known as mining. Once a transaction is confirmed, it is added to the blockchain, making it unalterable and public. A typical transaction includes the sender's and recipient's wallet addresses, the amount transferred, the transaction fee (if any), and the digital signature. Cryptocurrency transactions are known for their transparency but also provide a degree of anonymity as real-world identities are not directly linked to wallet addresses.
For instance, if Alice wants to send 1 Bitcoin to Bob, she will initiate a transaction, signing it with her private key. This transaction is then broadcasted to the Bitcoin network where miners confirm it and add it to the Bitcoin blockchain.<