Transaction Messages (TxMsgs)

Transaction messages (TxMsgs) are atomic state transitions.

What is State?

The "state" refers to the current status and data stored by the blockchain, such as account balances, smart contract data, etc.

Transactions trigger state changes by altering this stored data. For example, a transaction may transfer tokens from one account to another, changing the token balance state.

The core function of a blockchain is to process transactions and transition between states while maintaining consensus and validity.

State Machine

The blockchain essentially represents a finite state machine - a system that can be in a finite number of states. The finite state machine refers to the blockchain's core software that processes transactions and transitions between states. This provides the foundation for the blockchain's transaction and consensus logic.

• The current state encompasses all the existing data stored on the blockchain such as account balances, contract data, etc.

• Transactions trigger transitions between states. For example, transferring tokens changes balances. Given the current state and a transaction, the next state is deterministically calculated.

• The state machine ensures transactions cause valid state transitions, where "valid" is defined by the application logic. Invalid transactions are rejected and do not cause a state change.

• The consensus engine ensures all nodes agree on state changes that get committed to the chain. The sequence of states and transitions between them form the blockchain.

Blocks, Txs, and TxMsgs

• Blocks are state transtitions. Blocks hold a reference to the previous block and contain transactions.

• Transactions (txs) are state transtitions, each cryptographically signed by accounts. Txs are made up of transaction messages (TxMsgs).

• TxMsgs are atomic state transitions. Within a transaction, each TxMsg is processed entirely or not at all, enuring consistency in state updates.

• Implemented by cosmos-sdk/types.Msg

Transactions

Transactions are state transition operations that allow users to interact with the Nibiru blockchain. Transactions are comprised of metadata and one or more TxMsgs that trigger state changes within modules through their Protobuf Msg services.

When users want to make state changes like transferring tokens or interacting with smart contracts, they create transactions containing appropriate TxMsgs. Each TxMsg must be signed using the private key of the account initiating the action, before the transaction is broadcasted to the network.

A transaction must then be included in a block, validated, and approved by the network through the Tendermint consensus process. Once a block containing a transaction is committed, its state changes are finalized and persisted to the blockchain.

Structure

At a high level, transactions contain:

• TxMsgs - State transition operations like token transfers, governed by application logic.
• Signatures - Cryptographic signatures of all TxMsgs by the initiating accounts.
• Fee - Transaction fee paid by the initiator, in gas or tokens.
• Memo - Optional memo for the transaction.
• Timeout Height - Block height after which the transaction is invalid.

Lifecycle

The lifecycle of a transaction includes:

1. Creation: The user constructs the transaction by adding TxMsgs and signing.
2. Propagation: The signed transaction is broadcasted to the network.
3. Pooling: The transaction enters the mempool to await inclusion in a block.
4. Validation: The transaction is validated against application logic and signatures verified.
5. Inclusion: The transaction is included in a block by the validator that proposed that block.
6. Approval: The network approves the block containing the transaction through consensus.
7. Execution: Upon finalized consensus, state transitions in the transaction are executed.
8. Confirmation: Transaction is considered immutably confirmed once sufficiently buried under newer blocks.