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Blockchain Tutorial: How It Works in 6 Steps
Here is how a blockchain transaction works:
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Transaction Initiated:
A user initiates a transaction (e.g., sending crypto, creating a contract). -
Broadcast to the Network:
The transaction is shared with the decentralized network of computers (called nodes). -
Validation Process:
The nodes validate the transaction based on preset rules and consensus mechanisms like Proof of Work or Proof of Stake. -
Block Creation:
Validated transactions are grouped together into a new “block.” -
Block Added to the Chain:
The new block is linked to the previous one—forming a chronological, permanent ledger. -
Transaction Complete & Immutable:
The block is visible to all and cannot be altered, creating a secure, tamper-proof history.
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