Chain

A blockchain is a distributed and immutable ledger that records all transactions across a network of computers (nodes). The term "chain" refers to the sequential linking of blocks, each containing a batch of transactions.

How the Blockchain Chain Works

• When a transaction is initiated, it is broadcasted to the network, where it is verified by nodes (miners or validators, depending on the consensus mechanism).

• Verified transactions are grouped together in a block. The block includes the hash of the previous block, ensuring its connection to the existing chain.

• Once a block is filled with transactions, it is validated by the consensus mechanism (e.g., solving a cryptographic puzzle in PoW).

• Once validated, the block is added to the blockchain, and the network nodes update their copies of the ledger.

• The new block is now part of the immutable chain, linked by cryptographic hashes to all previous blocks.

Benefits of the Blockchain Chain Structure

• Security: The cryptographic links between blocks and decentralized consensus make it incredibly difficult to alter or corrupt the blockchain.

• Decentralization: Eliminates the need for a central authority, distributing control across the network.

• Transparency and Trust: The chain’s transparency and immutability build trust among participants.

• Traceability: Every transaction can be traced back through the chain, making it easy to audit the history of data.