Definition
The transaction ID definition can be explained as an identification that represents a cryptocurrency transaction. You can find a transaction ID, or simply TXID, in the form of an alphanumeric string that refers to each transaction occurring in a blockchain.
Understanding the term
Every day, countless cryptocurrency transactions take place on various blockchains. Without the existence of a transaction ID, it would have been impossible to keep track of all crypto transactions happening on a particular blockchain.
Transaction IDs are generated for every single transaction that has been completed. Anyone can check the status of a transaction using either a full node or a wallet with the help of TXID. There are free-to-use, online, third-party blockchain explorer platforms and services that help crypto users track any transaction through TXID.
With the help of a transaction ID, you can find out the amount of crypto assets sent, the sender’s address, the date and time of the transaction, and also the receiving party’s blockchain address in a matter of seconds using blockchain trackers.
Takeaway
A lot of people confuse transaction ID for transaction address because they sound similar. While it is safe to share one’s TXID, it is not at all safe to share the transaction address. TXID is also known as transaction hash.