A signed transaction in cryptocurrency is a transaction that has been validated and authenticated using a private key to prove that the transaction was authorised. This digital signature is created using a combination of public and private keys, and it verifies the identity of the transaction participants.
Here are some important aspects of signed transactions:
- Authenticity – Digital signatures ensure that the transaction data is authentic and has not been tampered with.
- Non-repudiation – The transaction initiator cannot deny their involvement in the transaction.
- Uniqueness – Each transaction is assigned a unique signature so that there are no duplicates.
- Confidentiality – The private key is kept confidential.
- Irreversibility – Once a transaction is signed, broadcast, and mined into a block, it cannot be reversed.
- Security – It is one of the most secure ways to secure a wallet’s contents. However, if a required party is unable to sign, funds cannot be sent.
How to sign a transaction
Signing a transaction means using your private key to authenticate and validate an action on the blockchain. It’s a digital signature that proves you have authorised the transaction without revealing your private key.
When a transactional request occurs, the private key is used to sign the transaction which delivers mathematical proof that the Bitcoins have come from the owner. This is known as a signature, and it is the signature that also prevents the transaction from being altered by anyone else. Once a transaction is signed and validated Bitcoins are sent to and received in another wallet. At this point the transaction is irreversible.
A signed transaction in Polygon is a transaction that is created in a user’s wallet and signed with their private key. The signed transaction is then sent to a trusted sequencer’s node via JSON-RPC. The transaction is then stored in the pending transactions pool, where it waits to be executed or discarded by the sequencer.
Here are some things to know about Polygon:
- Polygon is a blockchain platform that is compatible with Ethereum.
- Polygon uses a proof-of-stake consensus mechanism to process transactions.
- Polygon can handle 65,000 transactions per second, which is much faster than Ethereum’s 17 transactions per second.
- Polygon’s transaction fees are much lower than Ethereum’s, costing only a few pennies compared to Ethereum’s average transaction fee of around £15.
- Polygon’s native token is named POL.