Cryptocurrency transactions are transfers of funds from one user to another, which is technically implemented by making a corresponding entry in the blockchain registry. Since the systems of any cryptocurrency are decentralized, transactions are carried out according to a certain algorithm, which differs from the fiat financial system, and only if certain conditions are met.

Transaction principle

Technically, each cryptocurrency transaction is a message with certain information encrypted. For a transaction to be validated, it is carried out in stages:

• the owner of the coins makes the payment;
• the crypto coin user who creates a transaction confirms it with his unique key (digital signature, multi-signature);
• miners (validators) confirm the authenticity of the payment, after which the corresponding entry is added to the common open source registry.

Thus, data on any transaction can be viewed by any participant in the cryptocurrency community, regardless of the time it took place.

Commission

In a decentralized financial system, the fees for each transaction may vary. Moreover, the values vary over a very wide range. The size of the commission is affected by:

number of transaction entries;

network congestion.

In case of high workload, miners prioritize those transactions for confirmation for which users are willing to pay a higher commission percentage, because this amount of money goes to the validator as a reward for the work performed (verifying the transaction's authenticity).

The number of transaction inputs usually depends on the amount. For example, a smaller transaction for 1 bitcoin will be easier regarding the number of inputs than for 10 bitcoins, because they can be formed from the sum of coins (5+2+1+2 or other combinations).