The anatomy of a blockchain transaction
Transaction is the core of everything that happens in a blockchain. It is important to understand what a blockchain transaction consists of and how the various elements hold valuable information about the transaction. This is also a good primer to understand how blockchain transactions are different from transactions of a traditional system.
A blockchain transaction typically consists of the following elements:
- Input: The input refers to the previous transaction output that is used as the input for the current transaction.
- Output: The output is the result of the transaction, which can be either the payment to a recipient or the creation of new units of a cryptocurrency.
- Transaction fee: A transaction fee is a small amount of cryptocurrency that is included in the transaction and paid to the miner, who processes the transaction and adds it to the blockchain.
- Signature: A signature is a piece of data that is used to verify...