Friday, April 19, 2019

How to Verify Cryptocurrency Transactions on the Blockchain

To those who are new to the cryptocurrency world and intend to verify their transactions, this is a step by step guide on doing that. Once you’ve purchased cryptocurrency and need to send it to your wallet or that of another person, you’ll need to verify the transaction on the blockchain.

That’s one of the best things about the blockchain. No transaction can be hidden from anyone at any point in time. It’s all made public. The blockchain houses all the transactions that have ever been made on the blockchain from the very first block mined.

Verifying your Cryptocurrency Transactions

Verifying your transactions on the blockchain is as easy as A-B-C. In this article, we’re going to use the blockchain of Bitcoin, the most dominant cryptocurrency.

1.    Note Down your Transaction ID

When you’ve made the transaction from a wallet to another wallet, there will be an ID called the transaction ID which is unique to that particular transaction you made. This transaction ID facilitates the tracking of your transaction. It is mostly referred to as TxID on most exchanges or wallets.

2.    Fix in the Transaction ID on its Respective Blockchain

For every cryptocurrency, there is a particular blockchain. ERC20 or ERC223 tokens have their blockchain as the Ethereum blockchain. Bitcoin has its unique blockchain and so on. For a Bitcoin transaction, you’ll need to get to the website on which the blockchain ledger is shown. The website address for this is blockchain.info. At the top right of the website, there’s a search field where you can input your transaction ID. You can also fix in your wallet address in case you forgot to copy your TxID.

3.    Check the Status of the Transaction

When you fix in your transaction ID, press the enter key on your PC. You’ll find all the details about your transaction in the status. You should see a number of confirmations which show the progress of your transaction completion. Most bitcoin transactions require a total of 6 confirmations to complete a transaction to another address. Sometimes when there are a high number of transactions on the bitcoin network, confirmation could become slow. During the December 2017 peak, bitcoin transactions were at its highest ever. This led to some people complaining that their transactions took days to complete. For now, bitcoin transactions take just a few minutes to get completed.

In the details concerning the transaction, you can also find the total amount of fees you paid to the miners. This amount sometimes increases or decreases depending on the number of transactions.

How to Verify Transactions of Other Coins/Tokens

First, you need to understand that a token is different from a coin. A coin can be mined by anyone. A token can only be purchased by one trader from another trader. They are, however, both cryptocurrencies. A token is built on the blockchain of a particular coin. In order to verify the transaction of a token, you need to find out the blockchain it was built on. The most popular choice of projects on which blockchains to build their tokens on remain Bitcoin, Ethereum, Litecoin, Ripple, NEM and Dash

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