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Is that the process will go through all the blocks and find the block which contains the txid or there's an index table for all transactions?

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This is not prescribed in the Bitcoin network protocols, of course. So each software developer is free to make their own choices.

Personally I think only the most inexperienced and naive developer would choose to read and re-read half a terabyte of data every time they need to retrieve a few bytes of data for a transaction. An index of any type is the obvious approach. There are numerous libraries and tools for this purpose.

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