What is blockchain? Part 2
In the previous article, we examined the basic principles of blockchain technology. Today, let’s talk about the basic algorithm of its work.
How does the blockchain work?
Step 1: The user initiates the transaction.
Step 2. The transaction is sent to a peer-to-peer computer network, where all nodes are equal. This transaction is being tested for validity and, together with other current transactions, is included in the block.
Step 3. The nodes solve a complex computational task for fixing the block.
Step 4. When the problem is solved correctly, the block is confirmed by the nodes of the network and clings to the last correct block.
Step 5. Thus, the blocks are linked in a chain (that’s why the name block chain = a chain of blocks). There may be two alternative chains that differ by one last block (or even a pair). But with each next block the complexity of recounting a new chain grows exponentially from the number of blocks in it. Therefore, in the end, there will always be one true chain, after a few blocks after that in which our transaction lives. It is important to understand that this does not happen instantly, and there is always a certain period of time when there is uncertainty whether our transaction enters the block of the longest chain.
Step 6. After getting into the longest chain of blocks, the transaction is considered perfect.
Blockchain is a secure, distributed and transparent system for transferring funds between participants in a transaction without involving an intermediary.
To be continued…