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Ethereum Transaction

Give me the basics

An Ethereum transaction is a digital process of sending and receiving Ether, the cryptocurrency of the Ethereum network, from one address to another. Every transaction is validated and recorded in the blockchain, a decentralized public ledger. A transaction involves a sender’s address, a recipient’s address, and the amount of Ether transferred. Additionally, transactions may contain data or smart contract code, which execute when the transaction is processed by the network. Transactions require a fee, known as gas, paid in Ether, which incentivizes miners to process and validate them.

In-depth explanation

Ethereum is a blockchain-based platform that allows developers to build decentralized applications, or DApps, using smart contracts. Ethereum transactions are the backbone of the platform, allowing users to send and receive Ether (ETH), the native cryptocurrency of the Ethereum blockchain, as well as interact with DApps.

At a high level, an Ethereum transaction involves the transfer of Ether or the execution of a smart contract function. When a user initiates a transaction, they specify the recipient address, the amount of Ether to send, and any additional data required for the smart contract function. The transaction is then broadcast to the Ethereum network, where it is verified by miners and added to the blockchain.

Each Ethereum transaction has a unique identifier, known as a transaction hash, which can be used to track its progress on the blockchain. Transactions can take a few seconds to a few minutes to be confirmed, depending on the current network congestion and the gas price offered by the user.

Gas is a unit of measure for the computational resources required to execute a smart contract function. Each transaction on the Ethereum network requires a certain amount of gas, which is paid for in Ether. The gas price is set by the user and determines the priority of the transaction. Transactions with higher gas prices are processed faster by the network.

Once a transaction is confirmed and added to the blockchain, it becomes immutable, meaning it cannot be altered or deleted. This makes Ethereum transactions secure and resistant to tampering.

In summary, Ethereum transactions are the means by which users transfer Ether and interact with DApps on the Ethereum blockchain. By understanding the basics of Ethereum transactions, users can effectively participate in the Ethereum ecosystem and make informed decisions when sending or receiving Ether.