How does a Blockchain transaction work?

A blockchain transaction involves the process of creating, validating, and adding transactions to the blockchain ledger in a secure and immutable manner.

Creating Transactions

When a user initiates a transaction on the blockchain network, they create a digital record of the transaction including details such as sender, recipient, amount, and a digital signature.

Validating Transactions

After a transaction is created, it is broadcasted to the network for validation. Nodes on the network verify the transaction details to ensure its authenticity and legitimacy. Once validated, the transaction is added to a block for confirmation.

Adding Transactions

Miners play a crucial role in adding transactions to the blockchain ledger. They compete to solve complex mathematical puzzles to validate transactions and add them to a new block. Once a block is created and added to the chain, the transaction becomes a permanent part of the ledger.

Decentralized Consensus

Blockchain transactions are secured through decentralized consensus mechanisms. Nodes on the network work together to validate transactions and agree on the order in which they are added to the blockchain, ensuring transparency, security, and immutability of the transaction history.