How blockchain Works?

 How blockchain Works?

Blockchain is a digital ledger technology that enables secure, transparent, and tamper-proof record-keeping. In simple terms, it's a decentralized database that allows multiple parties to access, verify, and update information without the need for intermediaries.

The basic structure of a blockchain consists of a network of nodes that work together to maintain a shared ledger of transactions. Each node stores a copy of the ledger, and any updates to the ledger are distributed to all nodes in the network.

When a transaction occurs, it is verified by the network of nodes using a consensus algorithm. Once the transaction is validated, it is added to a block of transactions, which is then added to the existing chain of blocks (hence the name "blockchain").

Each block in the chain contains a hash (a unique identifier) of the previous block, which creates a chain of blocks that is linked together. This creates a chronological and immutable record of all transactions in the network.

Because each block contains a hash of the previous block, any attempt to modify a previous block would require modifying all subsequent blocks in the chain, making it extremely difficult to tamper with the ledger.

In summary, blockchain works by creating a decentralized network of nodes that work together to maintain a shared ledger of transactions. The consensus algorithm ensures that all transactions are valid before they are added to the blockchain, and the hash-based linking of blocks creates a tamper-proof and immutable record of all transactions.