How does the blockchain work?

The blockchain is a distributed, digital ledger that records and stores data across many computers in a way that makes it difficult for any one party to alter or delete the information. Blockchain technology uses cryptography and consensus algorithms to ensure that records are secure and transactions are confirmed and validated. Each block in the blockchain contains a cryptographic hash of the previous block, a timestamp, and transaction data. When a new transaction is initiated on the blockchain, it is broadcasted to a network of nodes (computers) and verified by those nodes. Once validated, the transaction is added to the blockchain as a new block, which is linked to all the other blocks in the chain. All blocks are secured using a hash, which acts as an electronic signature, and are immutable (unable to be changed). The blockchain ensures that all transactions made on the network are secure, traceable, and irreversible.