#EDUCATIONAL_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