How does a blockchain transaction work in the context of digital currencies?

1 answers

• May 21, 2022 · 3 years ago
  In the context of digital currencies, a blockchain transaction works by utilizing the principles of cryptography and distributed consensus. When a transaction is initiated, it is broadcasted to the network of nodes, who then compete to validate and include the transaction in the next block. This validation process involves solving complex mathematical puzzles, known as mining, which requires significant computational power. Once a block is mined, it is added to the blockchain, and the transaction becomes confirmed. This decentralized and transparent process ensures the integrity and security of digital currency transactions.
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