Blockchain works by connecting computers in a network through cryptography and decentralized consensus algorithms. This creates a secure, tamper-proof distributed ledger that is shared across all participants within the network. All data on the blockchain is encrypted and packages together into blocks of information that are then added to the chain. When a new transaction occurs, a new block is added to the chain, and its data is verified by the nodes on the network. Once a block has been added to the chain, it cannot be altered or removed, making it a tamper-proof and secure digital ledger.