Glossary: Transaction
A transaction is an action recorded on a blockchain, such as sending tokens, swapping assets, minting an NFT, or interacting with a smart contract.
What is a Transaction?
A transaction is an action recorded on a blockchain, such as sending tokens, swapping assets, minting an NFT, or interacting with a smart contract.
Transaction Explained
A transaction is like a recorded action on a blockchain.
When someone sends crypto, buys an NFT, or uses a dApp, they create a transaction.
The blockchain checks that the transaction follows the rules, then adds it to its records.
Once confirmed, the transaction becomes part of the blockchain’s history and can usually be viewed on a block explorer.
What a Transaction Means For
Audience | Use Case |
|---|---|
Crypto users | Send assets, swap tokens, mint NFTs, or interact with blockchain apps. |
Developers and dApp teams | Build products that create, read, confirm, and display blockchain transactions. |
Analysts and researchers | Study user activity, protocol usage, volume, fees, and wallet behavior through transaction data. |
Examples
A user sends ETH from one wallet address to another, creating a transaction on Ethereum.
A trader swaps USDC for ETH on a decentralized exchange, and the smart contract records the transaction.
A user mints an NFT, creating a blockchain transaction that records ownership of the new token.
A DeFi user deposits tokens into a lending protocol, creating a transaction that updates their on-chain position.
Transaction status in app analytics
For product measurement, separate user intent from execution outcome. An app may record an attempt as started, broadcasted, confirmed, reverted, or rejected; a rejected transaction never reaches the chain, while a reverted transaction is included but its contract call fails. Formo’s transaction event can include status, chain ID, hash, destination, calldata, and decoded function details. Define which state counts as conversion, and specify any confirmation or finality threshold in reports because settlement behavior varies by chain. The Formo transaction event reference lists the event properties and status values.
Related terms
Compare Smart Contract Events, Gas Fees, Conversion Event, and Block Explorer.
FAQs
What is a blockchain transaction?
A blockchain transaction is an action recorded on-chain, such as sending tokens or using a smart contract.
What does transaction confirmation mean?
It means the network has accepted the transaction and added it to the blockchain.
Can blockchain transactions be reversed?
Usually no. Once confirmed, blockchain transactions are generally permanent.
What is a transaction fee?
A transaction fee is the cost paid to process and confirm a blockchain transaction.
Where can I view a transaction?
You can view it on a block explorer using the transaction hash or wallet address.
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