Have you ever wondered how a blockchain actually works? You’ve probably heard the term many times over the past year but still have no idea what it actually means.
- Person A Wants to send money to Person B
- The transaction is represented online as a ‘block’
- The block is broadcast to every party in the network (this is usually the ‘miners’ – see more on cryptocurrency mining here)
- Those in the network (the miners) approve the transaction is valid – eg. does person A actually have the funds that they say they do?
- The block then can be added to the ‘chain’, which provides an immutable and transparent record of all the transactions that have taken place
- Finally, the money is then released to person B
Hopefully this quick rundown gives you a better understanding of the blockchain. If you have any questions, or want some further clarification, feel free to get in touch.
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