How Blockchain Works

A blockchain is a distributed ledger that records transactions in blocks. Each block is linked to the previous one, forming a chain. Once data is added, it is very difficult to alter without changing all subsequent blocks.

Simple Transaction Flow

1. User A wants to send crypto to User B.
2. The transaction is broadcast to the network.
3. Miners or validators verify the transaction.
4. The transaction is added to a new block.
5. The block is added to the chain.
6. User B receives the funds.

Examples of Blockchains

• Bitcoin: The first blockchain, designed for peer-to-peer payments.
• Ethereum: Supports smart contracts and decentralized applications.

Why It Matters

Blockchain provides transparency without central control. Anyone can verify transactions, and the history is immutable.