A transaction in cryptocurrency refers to the transfer of digital assets between two parties. This process typically involves sending or receiving coins or tokens, which are recorded on a blockchain, ensuring transparency and security.When a user initiates a transaction, they create a digital signature using their private key, which verifies their ownership of the assets. The transaction is then broadcasted to the network, where it is validated by miners or validators. They check that the sender has sufficient funds and that the transaction follows network rules.Once validated, the transaction gets added to a block and subsequently linked to the previous block, forming a chain. This makes it nearly impossible to alter the information, enhancing security and trust.Transactions can vary in terms of size and complexity, ranging from simple transfers to more complicated smart contracts. The speed and cost of transactions can also differ, influenced by network congestion and the fees users are willing to pay. Overall, transactions serve as the foundation for interactions and exchanges within the cryptocurrency ecosystem.