We often hear the word transaction in crypto.
But what does it actually mean?
A transaction is simply a record of an action.
In blockchain, a transaction can be:
Sending money
Receiving money
Updating a record
Proving ownership
A transaction answers three basic questions:
Who did something?
What was done?
When it happened?
Before a transaction becomes permanent, it is:
Created
Verified by the network
Added to a block
Once recorded on the blockchain,
a transaction cannot be secretly changed or erased.
That’s why transactions on blockchain are traceable and trustworthy.
Point to Ponder:
If every action left a permanent record, how carefully would we act?