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#EDUCATIONL_POST How Blockchain Works 1. Introduction to Blockchain - Blockchain: A decentralized, distributed ledger that records transactions across many computers in such a way that the registered transactions cannot be altered retroactively. This ensures security and transparency. 2. Key Components - Blocks: Each block contains a list of transactions. Once a block is completed, it is added to the chain. - Chain: A sequence of blocks linked together. Each block contains a reference (hash) to the previous block. - Nodes: Computers on the network that maintain and validate the blockchain. Each node has a copy of the entire blockchain. 3. Transaction Process - Initiation: A transaction is initiated by a user and broadcast to the network. - Verification: Network nodes validate the transaction using consensus mechanisms. - Consensus Mechanisms: Methods used to agree on the validity of transactions. Common ones include: - Proof of Work (PoW): Miners solve complex mathematical puzzles to validate transactions. - Proof of Stake (PoS): Validators are chosen based on the number of coins they hold and are willing to "stake" as collateral. - Inclusion in a Block: Validated transactions are grouped into a new block by miners or validators. - Adding to the Blockchain: The new block is added to the blockchain, making the transaction permanent and immutable. 4. Security Features - Hashing: Each block contains a unique hash of the previous block, ensuring that any alteration affects the entire chain. - Decentralization: The distributed nature of blockchain makes it
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