I’ve recently started learning about cryptocurrencies, and I’m a little confused about some aspects of blockchain transactions. One of them is finding the transaction ID, or TXID as it’s often called. I understand that it’s used to identify transactions on the blockchain, but I don’t quite get how you find it. Could you explain that to me?
I’ve seen some tools and platforms that people use to view details of blockchain transactions, but I don’t know which ones are the best or how to use them effectively. Maybe you could recommend some trustworthy and user-friendly tools for this? I’d appreciate it if you could also guide me on how to use these tools to find the TXID.
Also, I’ve noticed that the TXID seems to be comprised of a lengthy random string of numbers and letters. Is there a specific format for TXIDs, or do they vary depending on the cryptocurrency?
One more thing, what’s the significance of TXID in the grand scheme of things with regard to blockchain transactions? Why is it so important? I don’t mean relying on it for tracking transactions, because that bit I think I get, I just want to know if there’s more to it. I hope my questions make sense.
Sure, let’s dive into this. A TXID, or Transaction ID, is a unique string of letters and numbers associated with each transaction. Once a transaction is made on the blockchain, your wallet or the platform where you made the transaction usually provides the TXID. This TXID can be copied and pasted into a blockchain explorer – a search engine for a specific blockchain. Examples of blockchain explorers are Blockchair and Blockchain.com for Bitcoin and Etherchain for Ethereum.
The format of TXID does differ based on cryptocurrency. For Bitcoin, TXIDs are in SHA-256 format, making them a string of 64 characters (numbers and letters). For Ethereum, TXIDs known as hashes, are also a string of 64 characters but start with ‘0x’. Regarding the role of TXIDs, apart from tracking transactions, you can also use it to prove a transaction took place. This comes in handy when you need to prove you sent funds, especially when dealing with customer support for a wallet or an exchange platform. But overall, their most crucial function is to maintain the integrity and transparency of the blockchain network.