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How Does the Blockchain Work? Explained Simply

Published on
10 Apr, 2025 | 00:04

The blockchain is the core technology behind Bitcoin. It works as a public, digital ledger that stores all Bitcoin transactions in chronological order.

Here’s how it works:

  1. Transactions are grouped into blocks
    When you send Bitcoin, your transaction is bundled with others into a “block.”

  2. Miners validate the block
    Miners are special participants in the network who solve complex mathematical puzzles to confirm the block. This process is called “proof of work.”

  3. Blocks are linked together
    Once confirmed, the new block is added to the chain of previous blocks. This chain is permanent and nearly impossible to alter — hence the term blockchain.

  4. Everyone can verify the data
    All this happens transparently. Anyone with internet access can download the Bitcoin blockchain and verify any transaction from day one.

This system makes Bitcoin secure, censorship-resistant, and transparent. It also removes the need for a trusted third party.

Live Bitcoin price illustration with upward chart and Bitcoin logo – bitcoin24.com
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Source: CoinGecko