What Is an Ethereum Transaction?
An Ethereum transaction is a digital agreement between two parties that is stored on the Ethereum blockchain. It can be used to transfer funds, store data, or execute smart contracts. Transactions are signed digitally using cryptography and then broadcasted to the network for validation by miners. Once validated, they become part of an immutable ledger known as the blockchain.
Ethereum transactions are powered by Ether (ETH), which acts as “gas” for powering them through its native cryptocurrency token. When sending ETH from one address to another, users must pay a fee in order to incentivize miners who validate their transactions and add them into blocks on the chain. This fee is called gas and it varies depending on how complex your transaction is; more complex transactions require higher fees in order for miners to process them quickly and securely.