Blockchain Transaction
A Blockchain Transaction is a digital ledger operation that records the transfer of assets or data between parties securely and transparently.
- Context:
- It can (typically) be contained in a Blockchain Block.
- It can (typically) be created by a Blockchain Participant.
- It can involve the transfer of digital assets, cryptocurrencies, or tokens from one party to another without the need for a central authority.
- It can utilize public key cryptography to ensure secure transactions. Each participant has a pair of keys: a public key, which others can see, and a private key, which is kept secret. The private key is used to sign transactions, which are then verified by the network using the corresponding public key.
- It can be recorded on a distributed ledger, where each new transaction is added to a block and, once confirmed by consensus mechanisms such as Proof of Work (PoW) or Proof of Stake (PoS), is appended to the blockchain.
- It is irreversible—once a transaction is recorded on the blockchain, it cannot be altered or deleted, providing transparency and trust in the system.
- It can incur transaction fees, which compensate the network participants (like miners or validators) who validate and add the transactions to the blockchain.
- …
- Example(s):
- Counter-Example(s):
- See: Block Chain Database, Bitcoin System, Cryptocurrency, Distributed Ledger Technology, Smart Contracts, Cryptocurrency, Digital Wallet, Mining, Validator, Smart Contract.
References
2024
- (ChatGPT-OpenAI, 2024) ⇒ Prompt: Summarize the concept Blockchain Transaction in 1- 2 paragraphs. ChatGPT (model:gpt-4-turbo-preview). Retrieved: 2024-04-21.
- QUOTE: A blockchain transaction is a secure, digital transaction that is recorded on a blockchain, which is a decentralized, distributed ledger technology. When someone wants to execute a transaction, such as sending a cryptocurrency like Bitcoin from one person to another, this transaction is broadcast to a network of participants (nodes) in the blockchain. Each transaction is verified by these nodes through a consensus mechanism, ensuring its validity without the need for a central authority, like a bank or government. Once verified, the transaction is combined with others into a block, which is then cryptographically linked to the previous block in the chain, creating a sequential and immutable record of all transactions. This makes blockchain transactions highly secure, transparent, and resistant to fraud, as altering any information on a block would require consensus from a majority of the network and changing all subsequent blocks in the chain.
Blockchain transactions offer several advantages over traditional transaction methods, including increased security, reduced transaction costs, and faster settlement times. They also provide a high degree of anonymity and can facilitate transactions across borders without the need for currency exchange or third-party intermediaries. This has implications not just for financial transactions but for any type of record-keeping or data exchange, paving the way for innovations in fields such as supply chain management, intellectual property rights, voting systems, and beyond. The decentralized and open nature of blockchain transactions empowers users with greater control over their data and financial assets, challenging conventional frameworks of trust and transaction execution in the digital age.
- QUOTE: A blockchain transaction is a secure, digital transaction that is recorded on a blockchain, which is a decentralized, distributed ledger technology. When someone wants to execute a transaction, such as sending a cryptocurrency like Bitcoin from one person to another, this transaction is broadcast to a network of participants (nodes) in the blockchain. Each transaction is verified by these nodes through a consensus mechanism, ensuring its validity without the need for a central authority, like a bank or government. Once verified, the transaction is combined with others into a block, which is then cryptographically linked to the previous block in the chain, creating a sequential and immutable record of all transactions. This makes blockchain transactions highly secure, transparent, and resistant to fraud, as altering any information on a block would require consensus from a majority of the network and changing all subsequent blocks in the chain.
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Block_chain_(database)#Basic_principles Retrieved:2015-8-20.
- … A block chain implementation consists of two kinds of records: transactions and blocks. Transactions are the actual data to be stored in the block chain, and blocks are records that confirm when and in what sequence certain transactions became journaled as a part of the block chain database. Transactions are created by participants using the system in the normal course of business (in the case of cryptocurrencies, a transaction is created anytime someone sends cryptocurrency to another), and blocks are created by users known as "miners" who use specialized software or equipment designed specifically to create blocks.
Users of the system create transactions which are loosely passed around from node to node on a best-effort basis. The definition of what constitutes a valid transaction is based on the system implementing the block chain. In most cryptocurrency applications, a valid transaction is one that is properly digitally signed, spends currency units from a known valid wallet, and meets various other requirements such as including a sufficient miner "fee" and/or a certain time elapsed since the currency units were previously involved in a transaction.
Meanwhile, miners attempt to create blocks that confirm and incorporate those transactions into the block chain. In a cryptocurrency system such as bitcoin, miners are incentivized to create blocks in order to collect two types of rewards: a pre-defined per-block award, and fees offered within the transactions themselves, payable to any miner who successfully confirms the transaction.
- … A block chain implementation consists of two kinds of records: transactions and blocks. Transactions are the actual data to be stored in the block chain, and blocks are records that confirm when and in what sequence certain transactions became journaled as a part of the block chain database. Transactions are created by participants using the system in the normal course of business (in the case of cryptocurrencies, a transaction is created anytime someone sends cryptocurrency to another), and blocks are created by users known as "miners" who use specialized software or equipment designed specifically to create blocks.