The blockchain process
The whole process can be understood in three simple steps:
- Request for transaction
- Validation of information
- Addition of a new block
Refer to the following image for a clearer understanding of the blockchain process:
The blockchain process starts with a request from a user who wants to do a transaction. This transaction can be cryptocurrency, records, or any other information. The information is broadcasted over a network of many computers. These computers are called nodes. These nodes contain information about the existing blockchain of information. Using algorithms, a node validates new information with the existing information and provides a go or no-go signal. After the transaction is verified, a new block is added to the existing block of transaction, and it is copied to all the nodes on the network. As each node contain its own separate copy of information, there is no need for a centralized body of governance. This is why it is called a distributed ledger.
