A blockchain transaction is a data transmission recorded on a blockchain, typically the transfer of value or data between participants or storing data on a blockchain. If e.g. user A sends user B an amount of crypto token, this transfer is called a transaction. On Hive e.g. also each upvote, comment or the claiming of rewards is a transaction on the chain.
How does it work?
The transactional data is introduced into the chain not immediately, but at regular intervals, known as blocks. Each block on the chain collects numerous transactions, and only after enough transactions have accumulated or after a certain time period (this depends on the specifics of the blockchain), a new block is mined (immutable and time-stamped) and the transactional data are sent to the network. Once confirmed by several nodes, the block becomes irreversibly added to the blockchain and any new transactions are queued up for the next block.
Characteristics of blockchain transactions
- Due to the storage on a blockchain they are in principle decentralized and cryptographically secured.
- They are public and can be tracked. Each blockchain has tools to retrieve and view transactions, called blockchain explorers. An example of a Bitcoin explorer can be found here, an example of an explorer of the Hive blockchain is this one.
- They are irreversible. Unlike bank transactions they can´t be made undone.
- They are specific for and restricted to a certain blockchain. It is very important that transactions stay within the same blockchain. E.g. a transfer of Bitcoin to a Litecoin wallet will result in the loss of the Bitcoins. Most wallets check automatically the format of the receiving wallet and prevent wrong transfers, but there is no guarantee that this check is always working.
- They require fees (transaction costs), depending on the type of blockchain.
Characteristics of transactions on Hive
- Since Hive was designed to enable social media content, several transaction types on Hive deal with data upload like posting, commenting and upvoting other´s content.
- Hive supports also other transaction types, such as custom JSON operations for dApps.
- Transactions on Hive are feeless, but they consume resource-credits.
- Hive is a blockchain with a relatively large transaction capacity and a block time of only 3 seconds.
Links:
What is a blockchain transaction and how it works: https://www.scalingparrots.com/en/what-is-a-blockchain-transaction/
