What is a transaction hash

Transaction hash

A transaction hash is a unique identifier that represents a particular transaction on the blockchain. It is a cryptographic hash function applied to the transaction data, which includes details such as the sender's and receiver's addresses, the amount being transferred, and any additional data or metadata.

Note: Transaction Hash may be shortened to Tx Hash.

The primary purposes of a transaction hash

  1. Identification: Each transaction on the blockchain has a unique hash that distinguishes it from all other transactions. This hash serves as an identifier for the transaction.

  2. Verification: The transaction hash is used to verify the integrity of the transaction data. If any part of the transaction data is modified, even a single bit, the resulting hash will be completely different. This property makes it possible to detect any tampering or corruption of the transaction data.

  3. Indexing and lookup: Blockchain explorers and wallets use transaction hashes as a way to lookup and reference specific transactions. Users can search for a particular transaction hash to view its details, such as the sender, receiver, amount, and status (confirmed or unconfirmed).

When a new transaction is broadcasted to the blockchain network, its hash is calculated, and the transaction is then included in a block by miners or validators. Once the block is confirmed and added to the blockchain, the transaction hash becomes a permanent record, and the transaction is considered complete and irreversible.

Transaction hashes are an essential component of blockchain technology, providing a secure and tamper-evident way to identify and verify transactions, and enabling transparency and auditability within the cryptocurrency ecosystem.

Information provided in this post is for general informational purposes only and does not constitute formal investment advice. Please read the full disclaimer at shadeprotocol.io/disclaimer before relying on any information herein.

Last updated