Today the world of cryptocurrency has its own special terminology that is often not really clear for newcomers. If you are one of those and if you happen to listen to experienced cryptocurrency traders, professional miners or blockchain specialists talking to each other you might understand only adverbs and prepositions, while the rest may sound rather weird. In this article, The Coin Shark will help you figure out one important thing that every crypto-sailor should be aware of to start his journey over the blockchain ocean. And this is TXID of digital currency transactions. Today we will tell, what this four letter stand for, what is the function of TXID, how to find it and how to use it.
(please, click the topic to scroll down to it)
- What is a cryptocurrency transaction and how is it carried out?
- What is TXID and why is it needed?
- How to use TXID?
- How to find TXID?
Everyone is certainly aware of what is a transaction. Money are sent from one account to another, that is it. If we talk about digital currencies – then coins are transferred from one cryptocurrency wallet to another. However, how are cryptocurrency transactions carried out technically? What really happens behind the blockchain scene when cryptocurrency is transferred? Well, transaction is actually the information about assets transfer. This information is recorded into the blocks of blockchain of a particular digital currency. Each block contains a header and a list of transactions. The header includes transaction hashes, hash of the block itself, and hash of the previous block. In order to become a valid part of blockchain and to be written in the block, each and every transaction should be confirmed. The validity and correctness of each record is ensured and, thus, it is not possible to manipulate the information in the blockchain distributed database. The time spent on the confirmation of transactions is one of Bitcoin‘s (and some other virtual currencies) problems. It was initially planned that cryptocurrency transfers would be instant, however, it soon became clear that, given the multiply increased number of users, the confirmation of transactions can take more and more time. Bigger transactions, as well as transactions with higher commission fees set by the user are confirmed faster. Transactions are confirmed by miners when they create new blocks in blockchain by making calculations to find hash.
To put it simple, TXID is a transaction passport, a unique number that can be used to identify the current status of a particular transaction, as well as to find out whether it was actually recorded into blockchain or not. TXID (transaction ID) or a transaction hash is assigned to each cryptocurrency transfer. Actually, cryptocurrency exists as the recorded information. Digital coins do not exist physically, as well as electronic fiat money that are transferred between bank accounts. Therefore, sometimes it is very important to track the status of such a record.
TXID is assigned to a cryptocurrency transaction immediately when it joins the network and is its unique marker. It is generated randomly and looks like a sequence of letters and numbers. The total TXID size is 64 characters.
The transaction receives its TXID automatically, and users usually do not even care about it, unless there are some problems – their transaction is delayed, assets were not received, etc. In such cases it becomes necessary to check the status of the transaction, to find out whether it was recorded in the blockchain and confirmed or not.
You can use special services to track the transaction status. If you are interested in bitcoin transaction, there is the service blockchain.com that can help you with its BTC blockchain explorer. To check the Ethereum transaction, you can use Etherscan. In addition, there are also “multi-blockchain” services where you can find details about a number of cryptocurrency transfers and explore different blockchains. For example, SoChain can provide you with the information on bitcoin, Ethereum, Dash, Dogecoin, Zcash and Litecoin transfers. Users should just enter a hash of the needed transaction in the appropriate field and get the result.
TXID can be displayed right away in a cryptocurrency wallet when a particular transaction is carried out by a user. In addition, you can find TXID using the services mentioned above. To do this, you will need a sender’s cryptocurrency wallet address. For example, on blockchain.com it should be entered in the search box. The service will then show all transactions sent from this particular address, starting with the latest ones. TXID will be displayed in the gray box above the transfer information. This is how everyone can find all information about each and every transaction recorded into blockchain.
In this screenshot you can see all the information on the transfer of 10 thousand BTC, carried out in May, 2010 by one of early bitcoin developers Laszlo Hanyecz for the delivery of two pizzas. Back then it was very important for the developers and the community of the first cryptocurrency to show that bitcoin can really be used as a means of payment.
So, TXID is an important and useful element of every cryptocurrency transaction. It is the unique identification number of every transfer that can help users track transactions in the public blockchain and receive all necessary information about them. Accept of private keys and data on holders of cryptocurrency wallets, of course. Existing services provide easy access to the information stored in blockchain of a particular digital currency and allow users to quickly read the blocks and find the required data.
Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/