The Journey Of A Coin: How A Crypto Transaction Works
THE TRANSACTION LIFECYCLE
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🕒 9:01 AM
📅 Dec 20, 2025
✍️ By PolakaNagendraReddy
1. Initiation (Signing)
You enter the receiver's address and amount. Your wallet uses your Private Key to "sign" the transaction, proving it's really you.
2. Broadcasting (The Waiting Room)
Your transaction is sent to the network nodes. It sits in a waiting area called the "Mempool" (Memory Pool).
3. Validation (The Race)
Miners or Validators pick your transaction from the pool. They check if you have enough funds and if the signature is valid.
4. Confirmation (The Block)
Once validated, your transaction is bundled into a Block and added to the Blockchain. The money is now officially moved.
Real-Life Example
The "Glass BoxCheck Imagine putting a check inside a glass box.
Signing
You lock the box with your unique key (Private Key).
Broadcasting
You throw the box into a pile with thousands of others (Mempool).
Validation
A clerk (Miner) picks up your box, checks if the key matches the lock through the glass, and confirms the funds exist.
Confirmation
The clerk permanently glues your box onto a long wall of other boxes (Blockchain). Now, everyone can see it, but no one can move it.