How Does Blockchain Actually Work? Step-by-Step with Real-World Use Case
Introduction : Ever wondered how Bitcoin or Ethereum actually process your transactions? As a blockchain student, I meet many who understand "what is blockchain" but get stuck on how it really works behind the scenes. In this blog, we will walk through blockchain's entire process step-by-step — from a simple transaction to how it becomes a block — and apply this knowledge to a real-world situation! How Blockchain Works: The Journey of a Transaction Step 1: Shivam Sends Bitcoin to Vikash Let’s say Shivam wants to send 1 Bitcoin to Vikash. She creates this transaction using her digital wallet. Step 2: The Network Gets Involved Her transaction is broadcast to a global network of thousands of nodes (computers). Step 3: Miners & Validators Check the Transaction The network nodes work together to verify the transaction. They check: Does Shivam really have 1 Bitcoin? Is the digital signature valid? Step 4: Creating a Block Once validated, Shivam’s transaction is grouped with...