How Blockchain Works?

A basic blockchain works as follows:

1. A user requests a transaction.
2. A block representing the transaction is created.
3. The block is broadcast to all the nodes of the network.
4. All the nodes validate the block and the transaction
5. The block is added to the chain.
6. The transaction gets verified and executed.

The blockchain is another revolutionary technology that can change the ways of the internet just like open-sourced software did. As blockchain is a distributed P2P ledger system, anyone can see other users’ entries, but undoubtedly no one can alter it. You can only update the blockchain using a consensus algorithm. So, when a new set of information gets uploaded to the system, no one can alter it. The blockchain will contain accurate and reliable information on the ledger.

The core idea behind blockchains is their decentralized nature. Blockchain might sound simple, but inside there are a lot of protocols and algorithms that make it happen.