How is a transaction processed on the blockchain? From the moment of submission to final confirmation
Have you ever thought about what exactly happens when you press the “Send” button in a digital wallet? Does your money instantly reach its destination? Behind this simple process, a complex operation takes place, and understanding it helps users use blockchain technology with greater confidence.
Every blockchain transaction is like a journey—it starts from the source (your wallet), passes through various networks, and finally reaches its destination (the recipient’s wallet). But how does this journey happen? Who validates it? Why is it sometimes fast and sometimes slow?
In this article, we explain all the stages of a blockchain transaction in simple language, step by step.
Basic Concepts Before We Start
What Is a Transaction?
A transaction is a digital instruction created by a user and sent to the blockchain network to record a change in the state of one or more accounts.
Main Components of a Transaction
| Component | Description | Example |
|---|---|---|
| Sender | Source wallet address | 0x123… |
| Recipient | Destination wallet address | 0x456… |
| Amount | Value of assets being transferred | 10 MATIC |
| Gas Fee | Fee paid to the network | 0.001 MATIC |
| Digital Signature | Proof of sender’s identity | Cryptographic signature |
| Nonce | Transaction number (prevents duplicates) | 5 (fifth transaction from this address) |
The Complete Transaction Process
Step 1: Transaction Creation (Creating the Request)
The user, in their wallet:
-
Enters the recipient’s address
-
Specifies the desired amount
-
Selects the Gas Fee (or the system calculates it automatically)
-
Presses the send button
What happens behind the scenes:
-
The wallet creates a data structure for the transaction
-
Includes sender, recipient, amount, and fee information
-
Ready for signing
Step 2: Digital Signature (Identity Verification)
What is a Private Key?
A private key is a secret string that only the user knows. This key is used to sign transactions.
The Signing Process:
-
The wallet uses the user’s private key to sign the transaction
-
The signature is like a unique digital fingerprint
-
Anyone can verify the signature’s authenticity using the user’s public key
Important Note: The private key never leaves the network and is only used for signing.
Step 3: Broadcast to the Network (Sending to the Network)
After signing:
-
The signed transaction is sent to the blockchain network
-
It enters a “Mempool”
-
The Mempool is like a waiting queue where unconfirmed transactions sit
What is the Mempool?
The Mempool (Memory Pool) refers to the collection of unconfirmed transactions waiting to be processed.
Step 4: Selection by Validator (Entering a Block)
At this stage, validators (miners or validators):
-
Review the transactions in the Mempool
-
Select the transactions they want to include in the next block
-
Transactions with higher fees typically get higher priority
Factors affecting selection:
-
Proposed fee amount (higher = better chance)
-
Transaction age (older transactions may get priority)
-
Transaction size
Step 5: Transaction Validation
Before placing a transaction in a block, the validator checks:
| Check | Description |
|---|---|
| Valid signature | Does the signature match the sender’s public key? |
| Sufficient balance | Does the sender have enough assets? |
| Not a duplicate | Has this transaction already been recorded? |
| Correct format | Is the transaction structure correct? |
| Sufficient fee | Is the fee amount acceptable? |
Step 6: Block Formation and Consensus (Building and Confirming the Block)
After validating transactions:
1. Block Formation:
-
Validated transactions are collected into a block
-
The previous block’s hash is included in the new block (creating the chain)
-
A unique identifier (hash) is generated for the new block
2. Consensus:
-
The validator presents the block to the network
-
Other validators review and confirm the block
-
After majority confirmation, the block is added to the chain
Step 7: Finality
When the block is added to the chain:
-
The transaction is considered “confirmed”
-
Assets are transferred to the recipient’s account
-
The new state is updated across all network nodes
Finality in Different Networks:
| Network | Number of Confirmations Required | Approximate Time |
|---|---|---|
| Bitcoin | 6 blocks | ~1 hour |
| Ethereum | 12–20 blocks | ~3–5 minutes |
| Polygon | 256 blocks | ~2 seconds |
Note: On Polygon, due to its fast block production speed, finality time is very short.
What Is Gas Fee?
Definition
Transaction fee (Gas Fee) is the cost paid by the user to process their transaction on the blockchain network.
Why Do We Pay Fees?
| Reason | Description |
|---|---|
| Reward to validators | Validators receive rewards for confirming transactions |
| Attack prevention | Making transactions costly prevents spam attacks |
| Prioritization | Higher-fee transactions get processed faster |
Fee Calculation
General Formula:
Total Fee = Gas Units × Gas Price
Example on Ethereum:
-
Gas Units = 21,000 (for a simple transaction)
-
Gas Price = 50 Gwei (during congestion)
-
Total Fee = 1,050,000 Gwei = 0.00105 ETH
Example on Polygon:
-
Gas Units = 21,000 (similar to Ethereum)
-
Gas Price = 50 Gwei (but Gwei on Polygon is much cheaper)
-
Total Fee ≈ 0.0001 MATIC (very negligible)
Fee Comparison Across Different Networks
| Network | Average Fee | Suitable For |
|---|---|---|
| Bitcoin | $1–$5 | Large transactions |
| Ethereum (congested) | $5–$50 | Complex applications |
| Ethereum (normal) | $1–$5 | Medium transactions |
| Polygon | < $0.01 | Everyday transactions |
Transaction Confirmation Time
What Factors Affect Confirmation Time?
| Factor | Description | Impact |
|---|---|---|
| Network congestion | Number of pending transactions | More = Slower |
| Fee amount | Chosen fee level | Higher = Faster |
| Network speed | Network TPS | Higher = Faster |
| Network type | Layer 1 or Layer 2 | Layer 2 = Faster |
Confirmation Time on Different Networks
| Network | Approximate Time | Description |
|---|---|---|
| Bitcoin | 10–60 minutes | Slowest main network |
| Ethereum | 5–20 minutes | Medium |
| Polygon | < 2 seconds | Very fast |
Transactions on the Polygon Network
With its unique design, Polygon makes transactions much faster and cheaper.
Transaction Features on Polygon
| Feature | Description |
|---|---|
| High speed | Confirmation in under 2 seconds |
| Low cost | Fees of fractions of a cent |
| Stability | Consistent performance even during congestion |
| Simplicity | User experience similar to Ethereum |
Transaction Comparison: Polygon vs. Ethereum
| Stage | Ethereum | Polygon |
|---|---|---|
| Network | Layer 1 | Layer 2 |
| Fee | High | Very low |
| Speed | 15–30 TPS | 7000+ TPS |
| Confirmation time | 5–20 minutes | < 2 seconds |
Omid Coin and Transactions
Omid Coin, as a project operating on the Polygon network, benefits from Polygon’s fast and cheap transaction advantages.
Benefits for Omid Coin Users
| Benefit | Impact on User |
|---|---|
| Low cost | Users can transact without worrying about high fees |
| High speed | Instant transaction confirmation |
| Better experience | Smooth and uninterrupted usage |
Omid Coin = Good Technology = Better Life
Important Tips for Users
1. Choosing the Right Fee
-
Higher fee = Faster confirmation
-
Lower fee = Slower confirmation (may get stuck)
-
On Polygon, even low fees process quickly
2. Checking Transaction Status
You can check your transaction status by entering the Transaction ID in blockchain explorers:
-
For Polygon: PolygonScan
-
For Ethereum: EtherScan
-
For Bitcoin: Blockchain.com
3. Stuck Transactions
If your transaction isn’t confirmed:
-
The fee may have been set too low
-
You can resend the transaction with a higher fee
-
Wait for network congestion to decrease
4. Verify Recipient Address
-
Always double-check the recipient address
-
One wrong character can result in permanent loss of assets
-
Blockchain transactions are irreversible
Transaction Comparison Table Across Networks
| Feature | Bitcoin | Ethereum | Polygon |
|---|---|---|---|
| Speed (TPS) | 7 | 15–30 | 7000+ |
| Confirmation time | 10–60 min | 5–20 min | < 2 sec |
| Average fee | $1–$5 | $1–$50 | < $0.01 |
| Best for | Store of value | Complex apps | Everyday transactions |
| Reversible | Irreversible | Irreversible | Irreversible |
| Transparency | Complete | Complete | Complete |
Summary
Every blockchain transaction is a journey from your wallet to final recording on the network. This journey includes the following stages:
-
Transaction creation by the user in their wallet
-
Digital signature with private key for identity verification
-
Broadcast to the network and entry into the Mempool
-
Selection by a validator based on fee and priority
-
Validation of the transaction by the validator
-
Block formation and consensus for finalization
-
Final recording on the blockchain
Polygon, by providing fast and cheap transactions, has greatly improved the user experience. Projects like Omid Coin, operating on Polygon, benefit from these advantages and offer better services to their users.
FAQ
1. Why isn’t my transaction being confirmed?
The chosen fee may be too low, or the network may be congested.
2. Can I cancel a transaction?
Once sent, a transaction cannot be canceled. However, if it’s unconfirmed, you can replace it by sending a new transaction with a higher fee.
3. How long does a transaction take to confirm?
On Polygon: under 2 seconds; on Ethereum: 5–20 minutes; on Bitcoin: 10–60 minutes.
4. Do all transactions have fees?
Yes, all transactions have fees, but on Polygon they are very negligible.
5. Can I send a transaction with a lower fee?
Yes, but it may take longer to confirm or could even get stuck.
6. What’s the difference between a transaction on Polygon and Ethereum?
Polygon is faster, cheaper, and more scalable.
7. Are Omid Coin transactions fast?
Yes, because Omid Coin operates on the Polygon network.
8. What happens if I enter the wrong recipient address?
Unfortunately, your assets will be permanently lost. Always double-check the address.
