> For the complete documentation index, see [llms.txt](https://57blocks.gitbook.io/web3-knowledge-base/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://57blocks.gitbook.io/web3-knowledge-base/blockchain/transaction.md).

# Transaction

*<victor@57blocks.com>*

A transaction refers to a contract, agreement, transfer, or exchange of assets between two or more parties. The asset is typically cash or property. Likewise, a blockchain transaction is nothing but data transmission across the network of computers in a blockchain system.

Today’s blockchain networks use two types of transaction models: the UTXO model and the Account/Balance model.

**The UTXO model** are almost similar to cash or coins, Bitcoin and many Bitcoin derivatives such as Bitcoin Cash, Zcash, Litecoin, Dogecoin, Dash, and more are UTXO chains.

**The Account/Balance model** is similar to a bank account or debit card. Ethereum, EOS, Tron, and Ethereum Classic are account-based chains.

In this section, we'll explore what these two types of transaction model are, what's the difference between them and also go through their pros and cons.