Bitcoin has gained immense popularity as an investment tool for many traders and investors. The unprecedented transparency of its transactions causes many to be sceptical about the cryptosphere. Even today, when Bitcoins and Blockchain are known throughout the world, there are some who are still unaware of how Bitcoin Transactions actually work and how can one track a transaction done in Bitcoin.
For this, the blog will help you understand the basics of a Bitcoin Transaction, how it works and ways to track, them.
What is a Bitcoin Transaction?
Bitcoin Transaction is the confirmed transfer of Bitcoins i.e. when Bitcoins are transferred from one party to another. The transaction is distributed on the network and recorded on it in the form of blocks. This way the information or transaction is recorded in the files or ledger. Users of Bitcoin can track the chain of transactions, even from the very first transaction they have made.
Some traders and investors buy Bitcoins and hold them. They wait for the price fluctuation and when the price is favourable, they sell the asset or even buy more. Bitcoin users can now also pay with this currency for goods and services online. It is accepted as a means of payment at many places, sites, casinos and crypto exchanges.
How Does a Bitcoin Transaction Work?
Transaction of Bitcoin is different from the traditional banking ones. Crypto assets don’t exist in the physical form and so they are not actually stored in your pocket wallets. Crypto wallets contain the records of confirmed transactions that took place between accounts and the wallet. All these records are stored on the blockchain network.
While a transaction takes place, there is nothing that is actually sent or received. What actually happens is that a mentioned number of coins is sent from one wallet to another and this transaction information is publicly available. Each transaction is recorded as input and is directed to the account.
All the transaction information is linked to the name of the wallet and there is no way to find out the wallet holder’s name or identity. It is not possible to link the wallet to a real name or address and this is the reason why Bitcoin transactions are considered anonymous.
The process of transaction confirmation is including transactions in the block. Addition of transaction in one block is equal to one confirmation. And when at least six such confirmations are added, a transaction is considered as a confirmed transaction. This helps Bitcoin users in protecting against the repeated waste of same crypto coin.
How to Track Bitcoin Transactions?
Now finally, we will come to know how we can track our Bitcoin transactions. To track your transactions of Bitcoin, you first need to search for a website or app where you can perform this action like at PCEX. In order to begin, you need to first go to the website or download the app. The website or app will help you in tracking each and every Bitcoin transaction easily.
Transaction information can easily be searched based on a particular block number, Bitcoin address and transaction hashes. When these are combined with wallet explorers, it becomes easy to draw a connection between addresses and wallets that are holding Bitcoin. Through the app or website, you can see the tables and graphs showing what is happening in your Bitcoin wallet.
Here are some simple steps that you need to follow in order to get information of a transaction:
- Input- Fill in the information of the address of Bitcoin sender.
- Amount- The amount of the coins that are directed to the wallet.
- Output- This is the information of the receiver’s wallet address.
In order to find the required information, you need to know the Hash ID of the transaction, block number or Bitcoin address and just fill it in the search section of the site. Then, you will see the result with all the required data.
When you will check for the confirmation of a transaction, you will either see ‘confirmed’ or ‘unconfirmed’. When you receive unconfirmed as a result, it means that the transaction is still not added to the blocks.
Concluding, it can be said that though Bitcoin Transactions seem technical and complicated, they are much simpler in reality. The added benefit of transparency and anonymity add to its advantages. For traders and investors, the transactions in Bitcoin can be beneficial in the coming year 2020. There is a wide scope of profits, rewards and more in store for everyone looking to gain from the crypto market.
