Clear DefinitionsTransaction ID
Pronunciation
[tran-zak-shuhn ahy-dee]
Analogy
A Transaction ID is like a receipt number for a purchase—it's a unique reference that allows you to look up the exact details of a specific transaction among millions of others, proving that your transaction was processed.
Definition
A unique identifier assigned to every transaction on a blockchain, typically represented as a hexadecimal string. This ID is derived from cryptographically hashing the transaction data and serves as a permanent reference for locating and verifying the transaction.
Key Points Intro
Transaction IDs provide permanent, tamper-proof references to blockchain activities.
Key Points
Uniquely identifies each transaction in the blockchain's history.
Usually displayed as a long hexadecimal string (e.g., 64 characters for Bitcoin).
Created by hashing the transaction's data using algorithms like SHA-256.
Used to track, verify, and reference transactions in wallets and block explorers.
Example
After sending Bitcoin, you receive a Transaction ID like '3d7c2ebc9bcf2d8eed03f67b87054a0cba97ca389b08f51fad2a3955713d4ff5' which you can share with the recipient to prove you sent the payment or look up on a block explorer to check confirmation status.
Technical Deep Dive
A Transaction ID is typically created by applying a cryptographic hash function to the entire transaction data, including inputs, outputs, amounts, and signatures. In Bitcoin, this involves double-hashing the transaction with SHA-256. The resulting hash serves as both a unique identifier and a tamper-proof seal—any change to even a single bit of the transaction would produce a completely different ID, making it impossible to alter a transaction without detection.
Caveat
While transaction IDs are designed to be unique, in very rare theoretical cases, hash collisions could result in duplicate IDs. Most blockchain systems have additional safeguards to prevent or address such situations.
Transaction ID - Related Articles
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