How Blockchain Works: A Simple Explanation
Blockchain is a decentralized transaction database that works on the following principle:
1. Transactions are grouped into “blocks” and distributed among network nodes.
Miners use computing power to solve complex mathematical problems and validate blocks.
2. The new block “clings” to the previous one, forming a chain of blocks - blockchain.
Each node stores a complete copy of the blockchain, ensuring transparency and security. To change data in the blockchain, you need to change the entire subsequent chain, which is almost impossible.
3. Consensus algorithm (Proof-of-Work or Proof-of-Stake) prevents fraud and ensures data consistency.
Thus, the blockchain is a distributed, immutable and secure register of transactions without a single control center.
Before this, did you fully understand what blockchain is?
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