Blockchain · Question 2 of 6

How do blockchain transactions work?

A transaction is signed with your private key, broadcast to the network, validated, and then bundled into a block. Once the block is added and more follow, the transaction is considered settled.

From click to confirmed

  • You authorize a transaction in your wallet using your key.
  • It's broadcast to the network and waits in a queue.
  • Validators or miners include it in a block.
  • Each subsequent block is another confirmation, increasing finality.

Fees

Most networks charge a fee to process transactions, which can rise when the network is busy. The fee is separate from the amount you send.

Why it matters

This flow explains confirmations, fees, and why finished-looking transactions sometimes aren't final yet.

A practical way to picture it

Like dropping a letter into a sorting system: it's accepted, batched, and processed in stages — you can track it, but you can't pull it back once it's in.

Risks & common mistakes
  • Irreversible once confirmed.
  • Wrong address or network usually means permanent loss.
  • Low fees can leave transactions pending.
Put it into practice

See the ecosystem map

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Last reviewed 2026-06-25. This topic can change over time; always confirm current specifics from primary sources.