How Does Blockchain Work?

How does blockchain work?

In the language of cryptocurrency, a block is a record of new transactions (that could mean location of cryptocurrency, or medical data, or even voting records). Once each block is completed, it's added to the chain, creating a chain of blocks: a block chain.

Becuse cryptocurrencies are encrypted, processing any transactions means solving complicated math problems (and these problems become more difficult  over time as the blockchain grows). People who solve these equations are rewarded with cryptocurrency in a process called mining.

Information on the blockchain is also publicly available. It's decentralized, meaning it doesnt rely on a single computer or server to function. So any transactions are instantly visible to everyone.

What is Public Ledger?

Blockchain is like a public ledger. If you send Bitcoin (or some other cryptocurrency) to a friend, or sell it, that information is publicly available on the blockchain. Other people may not know your identity, but they know exactly how much value has been transferred from one person to another.

Many people see blockchain as an alternative to traditional banking. Instead of needing a bank or some other institution to verify the transfer of money, you can use blockchain and eleminate the middle man.

The blockchain was designed so these transactions are immutable, meaning they cannot be deleted.The blocks are added through cryptography, ensuring that they remain meddle-proof: The data can be distributed, but not copied.

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