In the context of blockchains, a transaction refers to the transfer of data or value between participants. It begins when a user initiates the transaction, which is then broadcasted to the network for verification. Nodes validate the transaction, ensuring it adheres to protocol rules and that the sender has sufficient funds. Once verified, the transaction is grouped with others into a block. The network reaches a consensus, using mechanisms like Proof of Work or Proof of Stake, to agree on the block’s validity. After consensus, the block is added to the blockchain, confirming the transaction and making it immutable. All confirmed transactions are publicly accessible, ensuring transparency and security through cryptographic links that prevent tampering. This process ensures secure, transparent, and immutable records of data or value transfers.
Related Articles
Blockchain Development Stack
Protocol Layer: This includes fundamental architecture as well as the consensus layer, activating layer, contract…
Internet Of Information (IoI)
The Internet of Information (IoI) embodies the foundational concept of the modern digital age, where…
Secure Multi-Party Computation (sMPC)
Secure multi-party computation (sMPC) is a cryptographic technique that allows multiple parties to jointly compute…