Transaction signing is a cryptographic operation in which the holder of a corresponding private key authorizes a specific operation. The network uses the relevant public key or related cryptographic data to verify the signature.

When sending funds, the wallet constructs a transaction containing the recipient, amount, fees, and other parameters required by the blockchain. The wallet then signs the transaction with the private key. The signed transaction can be broadcast to the network and may enter the mempool before being included in a block.

What a transaction signature proves

A digital signature allows the network to verify that the operation was authorized by the holder of the corresponding key and that the signed data has not been altered after signing. A signature does not, however, guarantee that a transaction will be included in the blockchain: it must still satisfy the network rules and may remain pending or be rejected.

It is also important to distinguish cryptographic signing from simply clicking a confirmation button in a wallet interface. Signing authorizes a specific operation, so the user should verify the recipient, amount, fee, and other parameters before approval. This is especially important when interacting with dApps and smart contracts, where the signed action may be more complex than a simple transfer.