How Blockchain Works
                     HOW
BLOCKCHAI
N  WORKS
@blockchainxtech
Blockchain 
Community
TRANSACTION
Two parties, A and B, decide to exchange a unit 
of  value (digital currency or a digital 
representation of
some other asset, such as land title, birth
certification  or education degree) and initiate the 
transaction
A
B
BLOC
KThe transaction is packaged with other pending
transactions thereby creating a “block.” The block is
sent to the blockchain system’s network of 
participating  computers
VERIFICATIO
NThe participating computers (called “miners” in 
the  blockchain) evaluate the transactions and 
through
mathematical calculations determine whether they 
are  valid, based on agreed-upon rules. When 
“consensus”  has been achieved, typically among 
51% of participating  computers, the transactions are 
considered verification.
HASH
Each verified block of transactions is time-stamped 
with  a cryptographic hash. Each block also contains 
a
reference to the previous block’s hash, thus 
creating a  “chain” of records that cannot be 
falsified expect by
convincing participating computers that the 
tampered  data in one block and all prior blocks is 
true. Such a
feat is considered impossible.
EXECUTION
The unit of value moves from the account of 
party A  to the account of party B.
B
A
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 READING
@blockchainxtech
Blockchain 
Community