How does the Blockchain work?
Centered on a peer-to-peer (P2P) topology, blockchain is a distributed ledger technology (DLT) that enables data to be stored globally on thousands of servers, thus allowing everyone on the network to access their inputs in near-real-time. This makes it difficult for a single user to gain control of a network.
Blockchain consists of three important concepts: blocks, nodes and miners.
Each page in the ledger of transaction forms a block. The block has an effect on the next block or page via a cryptographic hash. In other words, when a block is completed, it generates a specific protected code that connects to the next page or block, forming a blockchain.
Decentralization is one of the most important principles of blockchain technology. No single computer or entity may own the chain. Instead, the ledger is distributed via the nodes attached to the chain. Nodes can be any form of electronic device that preserves copies of the blockchain and keeps the network running. Each node has its own copy of the blockchain, and the network must algorithmically authorize every newly mined block for the chain to be modified, trusted, and checked.
Miners are producing new blocks on the chain through a method called mining. In a blockchain every block has its own unique nonce and hash, but it also refers to the hash of the previous block in the chain, so it’s not easy to mine a block, particularly on large chains. Miners use special tools to solve the extremely complex math problem of finding a nonce that generates an accepted hash.