March 23, 2024

Table of content

A Transaction ID, or TxID, is a unique alphanumeric identifier assigned to each transaction on a blockchain. Operating as a digital fingerprint, a TxID is generated by applying a cryptographic hash function to the transaction data, creating a distinct string of characters that proves the transaction's integrity and authenticity. Essentially, it functions as a virtual seal, linking users to the details of their transactions on the blockchain.

‍

Why Do You Need to Know Your TxID?

Knowing your TxID is essential for several reasons. Primarily, it empowers users to track the progress and status of their transactions in real-time. Users can access comprehensive details by entering the TxID into a blockchain explorer, such as sender and recipient addresses, the amount transferred, and the transaction's timestamp. This transparency instills confidence in users and aligns with the decentralized ethos of blockchain technology.

Furthermore, understanding and retaining your TxID is crucial in disputes or discrepancies. Access to this unique identifier gives users an irrefutable transaction record, which can be pivotal in resolving issues related to incorrect fund transfers or unauthorized transactions.

‍

Example: The Bitcoin Pizza Transaction

One of the most iconic examples of a TxID is associated with the Bitcoin pizza transaction, which took place on May 22, 2010. Programmer Laszlo Hanyecz made history by being the first person to conduct a real-world transaction using Bitcoin. He paid 10,000 BTC for two pizzas, which was worth a few dollars at the time but is now considered one of the most expensive pizzas in history.

The TxID for this historic transaction is: 

7ceb712b76d3f81e1ad7f0083f5f6e2a7a573c1854f634b3bbcac2e8e1164b76

By exploring this TxID on a blockchain explorer, users can trace the journey of these 10,000 bitcoins, witnessing their movement from Hanyecz's wallet to the pizza seller's address. This example vividly illustrates the power of TxIDs in providing an indelible record of transactions on the blockchain.

‍

! Disclaimer

The information provided in this article is for educational and informational purposes only and should not be construed as financial, tax, or legal advice or recommendation. Dealing with virtual currencies involves significant risks, including the potential loss of your investment. We strongly recommend you obtain independent professional advice before making any financial decisions. The products and services offered by Cryptology may not be suitable for all users and may not be available in certain countries or jurisdictions. The promotional materials do not guarantee any specific outcomes or profits from virtual trading. Past performance is not indicative of future results. It is important to read and understand the risks, which are explained in our Risk Disclosure Statement

Tom F.

Tom is one of the content managers here at Cryptology. While still fresh in his career he has been able to firmly place himself within the world of crypto and content creation, producing work for a number of publications including esports.net and The Times of Malta newspaper.