Article for beginners with recurring questions:

How does a Blockchain work?

Blockchain is a technology that allows information to be stored securely, transparently and without going through a central authority. But how does it work exactly?

What is a Blockchain?

Imagine a digital ledger shared between thousands of computers. Each page of this book is called a block, and each block contains information, such as transactions. These blocks are linked together to form a chain, hence the name blockchain.

How Are Blocks Added?

When a new transaction is made, it is sent to a network of computers, called nodes, which will verify that it is valid. Once this verification is done, the transaction is added to a block with other transactions.

The block is then linked to the previous one by a unique code (called a hash), which makes the blockchain almost impossible to modify. This ensures that the record remains intact and secure.

Why Is It Secure?

Blockchain is decentralized, which means that it is stored on many computers around the world. To modify data, it would be necessary to alter all copies of the blockchain at the same time, which is extremely difficult or even impossible.

In summary, blockchain allows you to store information reliably and securely, thanks to its decentralized system and the chaining of data blocks. It is a technology that provides transparency and security without requiring a trusted third party (Bank/Institution/..).