How Blockchain Technology Works Step by Step?
Sure, I'd be happy to explain how blockchain technology works step by step. Step 1: A transaction is initiated When someone initiates a transaction in a blockchain network, it is broadcasted to all the nodes in the network. This transaction could be anything, such as sending cryptocurrency, storing data, or executing a smart contract. Step 2: Verification The nodes on the blockchain network verify the transaction to ensure it is valid. Verification is done by checking the transaction's digital signature and verifying that the sender has sufficient funds to complete the transaction. Step 3: Adding the transaction to a block. Once a transaction has been verified, it is added to a block. Each block contains a set of transactions verified and confirmed by the network. Step 4: Hashing Before the block can be added to the blockchain, it is hashed. A hash function converts the data in the block into a unique code. This code is used to identify the block and ensure its integrity. ...