How does the blockchain technology work?

1. Transaction: A transaction occurs when two or more parties exchange goods, services, or currency. A transaction is recorded on the blockchain with the details of the transaction, such as the time, date, amount transacted, and the participants involved.

2. Network of Nodes: The blockchain network consists of a network of computers called nodes. Each node stores a copy of the shared ledger and verifies transactions on the blockchain.

3. Verification: Once a transaction is proposed, the nodes verify the transaction and its details using a consensus algorithm. This algorithm ensures that all transactions are valid and authorized.

4. Recording: After a majority of the nodes have verified a transaction, it is then added to the blockchain and stored in the shared ledger.

5. Mining: The process of mining is used to secure the blockchain by producing new blocks of data and confirming old transactions. Miners use powerful computer hardware to solve complex math problems that confirm the transactions and add them to the blockchain.

6. Consensus: Once the new block is added to the blockchain, all nodes in the network come to a consensus that the transaction is legitimate, and the information is immutable, making the decentralized blockchain secure.