Understand what happens after you hit send, and why confirmations matter.
A transaction is a signed instruction that tells the network to move value or execute a smart contract action.
Step 1. Build and sign
Your wallet creates a transaction. It includes destination, amount, and fee settings. Then it signs using your private key. The key stays in your wallet. The signature proves you authorized the action.
Step 2. Broadcast and mempool
The signed transaction is broadcast to the network and shared between nodes. Many chains keep a waiting area called a mempool. Your transaction sits there until a validator includes it in a block.
Step 3. Confirmation
Once included in a block, it has one confirmation. Each new block adds confirmations. Exchanges may require multiple confirmations before crediting deposits.
If a transaction is pending for long, do not resend blindly. Check the transaction hash in a block explorer first.
What goes wrong most often
- Wrong address or wrong network.
- Fee too low during congestion.
- Approving a malicious contract.
Do a small test transfer when using a new address or network. This single habit prevents large losses.
Quick quiz
- What does signing prove?
- Where do transactions often wait before confirmation?
- What is the safest habit before a large transfer?