$BTC This is *a series of blocks* (Blocks), each block contains a set of transactions.
- Each block is linked to the one before it using *strong encryption*, making it almost impossible to change any information without altering the entire chain.
- It operates over a distributed network of computers known as *nodes*, and each node maintains a complete copy of the chain⁽¹⁾.
*⚙️ How does blockchain work in Bitcoin?*
*1. 🧾 Create a transaction*
- When you send Bitcoin to someone else, a digital transaction is created containing:
- The sender's and recipient's addresses
- The amount
- A digital signature to verify identity
*2. 🧪 Verify the transaction*
- The transaction is sent to the Bitcoin network.
- Thousands of computers (nodes) verify its authenticity using *encryption algorithms*.
*3. ⛏️ Mining and adding the block*
- Transactions are grouped into a "block".
- Miners compete to solve a complex mathematical puzzle (Proof of Work).
- The first to solve the puzzle adds the block to the chain and receives a reward in Bitcoin.
*4. 🔗 Linking the block to the chain*
- Each block contains:
- Transaction data
- A timestamp
- A unique (Hash) code
- The previous block's hash
- This linkage makes the chain *immutable*.
