A transaction hash is a unique code used to track operations on the blockchain. It is a string of characters generated by cryptographic algorithms. This hash functions like a passport for each transaction, protecting it from alterations and forgeries. Thanks to this, we can be assured of the transparency and security of the entire network.
Each transaction receives its unique hash, which serves as a marker for searching and verifying. This code does not have logical meaning; instead, it links the transaction to a block. For cryptocurrency users, the transaction hash is a primary tool for confirming that their money is in order. The transaction hash is used across all popular blockchains: Bitcoin, Ethereum, Binance Smart Chain.
In this article, we will explore what a transaction hash is, how to create it, and its purpose, as well as answer all the key questions on this topic.
A transaction hash is a unique string of characters created using a cryptographic hash function that “consumes” transaction data and returns a unique identifier. It resembles creating a fingerprint for each transaction. Each time someone sends cryptocurrency or performs any operation on the blockchain, a hash is created that is intrinsically linked to the contents of the transaction: who sent it, who received it, how much money was transferred, and what fees were charged.
Why is a Hash Not Just Random Symbols?
The hash is the result of cryptographic algorithms, such as SHA-256 for Bitcoin or Keccak-256 for Ethereum. These algorithms work like magic: transaction data is transformed into a fixed-length string that is completely unique. If anyone attempts to change even one character in the transaction — like the amount or address — the hash will change immediately. This makes any attempts to manipulate transactions on the network obvious to all.
Security and Immutability
In 2025, the importance of hashes only increases. Thanks to hashing, the blockchain can ensure that no one can change the history of transactions without it being noticed by other network participants. This is the foundation of blockchain security and is why this technology is so popular in various fields — from cryptocurrencies to data storage and decentralized applications.
So, the transaction hash is not just a technical detail; it is at the heart of blockchain security, continuing to amaze with its strength and immutability in a world where information is the most valuable asset.
Transaction hashes serve several key functions that make the blockchain secure and user-friendly. Here are some of them:
Transaction Identification. The hash helps to accurately identify a transaction on the blockchain. Each hash is unique, enabling users to easily find the desired operation using only its hash.
Security Assurance. The transaction hash protects it from changes and forgeries. If anyone tries to alter the transaction data, its hash will change, which will be evident to all network participants. This makes it impossible to change information without being noticed.
Tracking Transaction Status. Users can use the transaction hash to track its status. For instance, if you send Bitcoin, you can enter the transaction hash in a blockchain explorer and see whether the transaction has been confirmed, how long it has been processing, and what fees were charged.
Additionally, the transaction hash plays a critical role in ensuring the transparency of blockchain operations. As all transactions on the blockchain are public, the hash allows anyone to verify the transaction history and confirm its authenticity.
The process of creating a transaction hash involves several steps. Let’s break down how it works:
Gathering Transaction Data. At this stage, all necessary information about the transaction is collected. This includes details about who is the sender and the recipient of the funds, how much is being transferred, what fees will be charged, and additional information such as a timestamp.
Applying the Hash Function. Once all the transaction data is collected, it is fed into a cryptographic hash function, such as SHA-256. This function processes the input data and generates a unique fixed-length string of characters.
Adding the Hash to the Blockchain. The transaction hash is added to a block, which is then recorded on the blockchain. The blockchain is a chain of blocks, and each block is linked to the previous one via its hash. This creates a secure and immutable record of all transactions in the network.
Once the transaction is recorded on the blockchain, its hash becomes accessible to all users. This allows for easy tracking of its status and verification of its authenticity.
TXID (Transaction ID) is an alternative name for the transaction hash. This term is often used in the crypto community and refers to the same identifier as the transaction hash. Unlike the hash, which may be a more technical term, TXID is more commonly used in everyday conversations among cryptocurrency users.
An example of a transaction hash may look like this: 0xabc123…. This is a fixed-length string that is unique to each transaction. It does not contain information about the transaction itself but allows for precise tracking within the blockchain.
To check the transaction, you need to enter this hash into the search bar on a blockchain explorer site like Etherscan or Blockchain.com. After that, you will be able to see the transaction’s status, amount, fees, and other details.
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