How Blockchain Works ?

How Blockchain Works ?

Blockchain is underlying technology of Bitcoin. Apart from financial transaction Blockchain can be used in many other sectors and areas.

Before you jump to work to Blockchain development , you need to understand how it works. Working of different blockchains like Ethereum, Hyperledger is different but we try to generalized the working in this post.

 

How Blockchain Works

How Blockchain Works

 

Let's try to understand it in detail. In this example, Joe need to send some money to Mark.

 

Step 1 : Joe initiate the transaction , he mention to whom he need to send the money and amount.

Step 2: Transaction get store in block, one block can also have other transaction as well, block creation timing and size vary in different blockchain.

Step 3: Block that has the transaction gets broadcast to the network where the same block gets transferred to all the nodes, in some blockchain block get transferred some of the nodes not to all the nodes.

Step 4: All the nodes in the network and validate/Miner the block, again this vary in different blockchain. E.g. in Ethereum transaction gets mined and miner gets the award but in Hyperledger fabric there is no award and transaction gets validated.

Step 5: Once block is validated, it get added to the blockchain.

Step 6: Finally money is being sent to Mark account without having any third party involved.

 

 

No Comments

Post a Reply

Inquire Now
close slider