HOW BLOCKCHAIN TRANSACTIONS WORK

How Blockchain Transactions Work

How Blockchain Transactions Work

Blog Article

Blockchain transactions follow a structured process to ensure security and efficiency:



  1. Transaction Initiation: A user initiates a transaction, specifying the recipient’s address and the amount to be transferred.

  2. Broadcasting to Network: The transaction is shared with all nodes (computers) in the blockchain network.

  3. Verification and Validation: Nodes verify the transaction using consensus mechanisms such as Proof of Work (PoW) or Proof of Stake (PoS).

  4. Block Formation: Verified transactions are grouped into a block.

  5. Permanent Record: The block is added to the blockchain, making the transaction immutable and verifiable.


This decentralized process ensures that transactions remain secure, fraud-resistant, and trustless.

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