We have now defined and described blockchain.
Nodes are either miners who create new blocks and mint cryptocurrency (coins) or block signers who validates and digitally sign the transactions.
A Clear Technical Explanation
A critical decision that every blockchain network has to make is to figure out that which node will append the next block to the blockchain.
Now the how a blockchain validates transactions and creates and adds blocks to grow the blockchain.
How blockchain works We have now defined and described blockchain. Now let’s see how a blockchain actually works. Nodes are either miners who create new blocks and mint cryptocurrency (coins) or block signers who validates and digitally sign the transactions. A critical decision that every blockchain network has to make is to figure out that which node will append the next block to the blockchain. This decision is made using a consensus mechanism. The consensus mechanism will be described later . Now the how a blockchain validates transactions and creates and adds blocks to grow the blockchain.
Why This Matters for Blockchain Technology
Understanding How blockchain works is not just an academic exercise — it has real-world implications for how blockchain systems are designed, deployed, and secured. Whether you are a developer building decentralized applications, a business leader evaluating blockchain adoption, or a curious learner exploring the technology, this knowledge provides a critical foundation.
Key Points to Remember
- How blockchain works We have now defined and described blockchain.
- Nodes are either miners who create new blocks and mint cryptocurrency (coins) or block signers who validates and digitally sign the transactions.
- A critical decision that every blockchain network has to make is to figure out that which node will append the next block to the blockchain.
- Now the how a blockchain validates transactions and creates and adds blocks to grow the blockchain.
Conclusion
How blockchain works represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.