How Does Blockchain Work? Understanding the Mechanism

Blockchain operates on a peer-to-peer network, where each participant (node) maintains a copy of the ledger. Here’s a simplified breakdown of how it works: A user initiates a transaction, which is then represented as a block. The block is broadcast to a network of nodes. Nodes validate the transaction using consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS). Once validated, the block is added to the blockchain, creating a permanent record. The transaction is complete, and the update is distributed across the network. This process ensures that transactions are secure, transparent, and tamper-proof.