How Blockchain Works: Explained Simply

Krutika Adani

Step 1 - Transaction Initiation

  • A user initiates a transaction (e.g., sending crypto).

  • The transaction gets encrypted and broadcasted to the network.

Step 2 - Verification & Validation

  • Nodes (computers) in the network verify the transaction.

  • Proof-of-Work (PoW) or Proof-of-Stake (PoS) ensures legitimacy.

Step 3 - Block Creation

  • Verified transactions are grouped into a block.

  • The block is added to the existing chain of transactions.

Step 4 - Security & Immutability

  • Each block has a unique hash linking it to the previous block.

  • This makes it tamper-proof and highly secure.

Why Blockchain Matters?

  • Decentralized – No central authority controls it.

  • Transparent – Everyone can verify transactions.

  • Secure – Immutable records prevent fraud.

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