The digital currency world is just like any other market where transactions take place, the buying and selling of cryptocurrencies.
Before anyone can become an investor in the cryptocurrency marketplace, they must have paid some amount of money to acquire digital currencies.
The location where cryptocurrencies are kept for various individuals is called a crypto wallet, which is the same thing as a bank account for fiat currencies.
Blockchain is the center for recording all transactions in the digital currency marketplace, and it is where transactions are verified to prove the authenticity of all transactions.
This is a large digital ledger where millions of transactions are recorded in the system and can be accessed by traders who seek to get details of various transactions that are made.
Everyone in the digital space can access the blockchain to enable them to verify and get updated on the status of their transactions.
Just as the digital world is trying to make life easy for everyone, verifying transactions in the digital world is very easy.
Going down memory lane and remembering the old ways of banking was hectic and time-consuming. Verifications took ages, processing transactions was very slow, and it made things difficult.
Technological advancement made things easier after the banking sectors adopted it, and it was easier to process fiat currency transactions.
If the digitalizing of the banking industry could make processing and verification of fiat currencies easier, how then can the digital currency transactions made online be slow, impossible!
Verifying transactions made in the blockchain is very easy, and this article will be giving an explicit explanation of the processes involved.
Transaction ID
These are IDs issued the moment transactions are made. When investors or sellers send coins from their address/wallets into the wallets of their buyers, transaction IDs will be received from their wallets.
Each transaction carries its unique ID, which stands as a fingerprint for the transaction. Through the IDs, transactions can be tracked. It is advised to save transaction IDs the moment it is issued because once misplaced, it will be impossible to track any transaction.
The transaction ID can also be known as TxID, the moment any digital currency transaction is initiated from the domain wallet to an external exchange/address.
So many people might be asking how they can see the transactions in their wallets, that simple.
When the wallet of the coin is opened, click on transactions, this will show the owner of the wallet all the transactions made from the selected wallet. The owner can then go ahead to click on the transaction and tap the ‘view on blockchain’ option, and the transaction ID will be displayed to the owner through the block explorer.
It doesn’t just show the transaction ID. The block explorer shows all the details related to the transaction. The owner can then copy the transaction ID.
The transaction ID is a specific string of characters that is used to verify any transaction made in the digital currency marketplace, which can be found on the blockchain server.
Transaction IDs are different and are saved on various blockchain depending on the particular coin that was transacted.
Investors and digital currency traders need their transaction IDs to verify if transactions were made.
- Using the Transaction ID
The blockchain can be accessed through different websites depending on the cryptocurrency. Because it is unique, every coin has its blockchain. Some of these coins and their website are:
BCH: bch.btc.com/
BTC: blockchain.com/
ETH: etherscan.io/
XRP: xrpscan.com/
LTC: live.blockcypher.com/
ETC: gastracker.io/
EOS: eosx.io/
XLM: steller.expert/explorer/public/
These are just a few of the blockchain addresses where transaction IDs can be obtained from.
When the site is opened based on the type of coin, buyers or sellers can search using the transaction ID. If the transaction ID was not saved, the buyer or seller can input their wallet address to see details of the transaction.
It is no doubt that transactions are the most important aspect of cryptocurrency. The system is built to enhance transactions by traders for them to enjoy effective confirmation, validation, and broadcasting.
Transactions are of two ways, the buyer’s side, and the seller’s side. The former is characterized as input because the coin goes into the buyer’s wallet, the latter is characterized as output because the coin is going out of the wallet.
This means that all inputs lead to outputs of different wallets. When investors make use of the block explorer, they get an overview of their inputs and outputs.
It is very important to keep track of transactions made in the cryptocurrency blockchain, and the block explorer makes this easier, just as every individual or business keeps a record of their transactions.
The block explorer comes with features that display the transaction or ID and shows various helpful statistics and charts of different activities on the network.
Traders should know that the blockchain is continuous piles of blocks on top of each other. Each block contains hundreds of transactions, including the current transactions traders are trying to verify.
Numbers of confirmation represent the number of blocks piled on top of the blocks containing the transactions. If 3 confirmations are displayed, it indicates 3 blocks that embody hundreds of transactions, each being on the top of the current transaction block.
Since this article is meant to increase the understanding of how to validate cryptocurrency transactions, it will be written to make the process simplified. Kindly read further.
On the block explorer of any cryptocurrency, the input of transactions is on the left-hand side while the output is shown on the right-hand side.
Every trader needs to monitor and validate their transactions to confirm the transaction made.
This helps to avoid fraudulent activities. When sellers tell buyers that transactions have been made, the buyer can use the block explorer to check the process by requesting the transaction ID.
If the transaction or block explorer brings out the message of ‘no transaction found’, then the transaction was not processed and the coin did not leave the seller’s wallet. The buyer will then have to contact the seller for verifications to be made.
- Transaction Status and Verification
As written above, the block explorer displays all the transaction details the moment the transaction ID is entered. This enables traders to verify the details of their transactions.
The moment transactions are made, it reflects in the account instantly. This shows as ‘pending’ until all confirmations are made.
When verifying transactions, the block explorer shows if the transactions have been confirmed. The number of confirmations will determine the number of transactions that have been recorded in the blockchain permanently.
Traders, especially the buyers of bitcoin in a transaction, should be informed that a total of 6 confirmations are needed before the bitcoin will appear in their wallet.
Other cryptocurrencies have varying numbers of confirmation ranging from 1 to even 10,000.
If a transaction has not been confirmed, it will be indicated at the right hand of each transaction on the block explorer. The confirmation period can vary. This usually depends on the fee paid or the level of the network. There is a period where the network might be congested due to so many transactions.
Transaction in the digital market usually attracts a transaction fee. This is the fee that is paid to miners in the system.
These miners play important roles in making transactions that are recorded diligently in the blockchain. Hence, they need to be paid.
These transaction fees are not static. They vary depending on the kind of transaction.
Some people might experience rare issues like the transaction showing confirmed on the block explorer, but the coin may not reflect yet on their wallet.
The problem might be as a result of the network; owners are therefore advised to reboot their devices or check their network if such issues occur.
If this is done and the coin still doesn’t reflect on the wallet, then the settings option can be used to force the wallet app to rescan.
Transaction of cryptocurrencies requires maximum focus. When there is a mistake with the recipient wallet address, the coin will be lost. Traders should be careful as cryptocurrency transactions are irreversible.
If sent to the wrong recipient, it will be impossible for them to call the owner to make a refund, but if the sender is very sure of the address, then the transaction will be confirmed and will reflect in the recipient’s wallet.
Do not be wary in case of slight delays because when transactions are made in the digital currency marketplace, adding the transaction to the blockchain requires a series of mathematical calculations, and the process of confirming the payments is done securely and stored on the blockchain before the recipient receives the payment.
When there are lots of transactions on the network, it tends to slow down transactions and confirmations; the miners in the system handle these confirmations.
Digital currency nodes communicate with the rest of the network when a transaction is initiated. The transaction is broadcasted to all the networks so the transaction can be confirmed.
Nodes may lose their sync with another network for a little period, this may cause delay, but the assurance is that the transactions will go through.
When trying to check the details of a transaction, be sure not to misplace even a single number in the transaction ID issued when the transaction was initiated. A transaction should take approximately between five minutes to three hours before it will be confirmed.
When transactions are confirmed completely, the recipient wallet will be updated automatically, this will show a green box, and whenever the transactions are not received, it reflects in the sender’s wallet as a spendable coin again. This may take up to 30 days.
A few things can lead to the unconfirmed transaction:
- When a very small amount of digital coins are sent without the transaction fees meant for the miners to confirm the transaction
- Spending unconfirmed crypto coins that appear pending. The transaction is deterred from generating until it is confirmed.
- Then the general issue of too much traffic congesting the network.
Much has been said about verifying and confirming cryptocurrency coins. What about the verification of other coins and tokens?
There is a difference between cryptocurrency coins and tokens. As the cryptocurrencies possess their blockchain, tokens have a separate blockchain different from the cryptocurrencies.
Tokens are mostly built on other blockchains that are already existing because the majority of tokens have no blockchain, an example of this is the ERC20 that beckons on the ethereum blockchain and can only be confirmed thus.
But it is not all tokens that don’t have blockchains, some tokens have their blockchain, and transactions are the same as written in the article using a block explorer.
Other types of tokens are NEO which uses the NEP-5 tokens, and anyone on the platform can make tokens. Civic is another that uses a token called CVC.
To create tokens, little technical ability is required and is not recommended for those that are newbies in the digital currency world.
Most tokens are created to exist on a decentralized application where programmers develop their tokens. They can choose the unit of tokens they want to create and where the tokens created will be sent.
For tokens to be placed on the existing cryptocurrency blockchain, the developers will have to pay the native cryptocurrency some amount.
The exchange platform known as Binance has its token, and when traders on the system make use of the Binance token, they pay fees lesser than 50%.
Tokens are mainly for interacting with the decentralized app; there are various kinds of tokens like payment tokens, security tokens, asset tokens, equity tokens, and utility tokens.
If a transaction of the token is to be made for tokens, it has to be accessed on the main cryptocurrency wallet.
When transactions are verified and confirmed, the recipient feels at ease, and this is an amazing feeling.
