{"id":30103,"date":"2023-02-20T22:39:11","date_gmt":"2023-02-20T22:39:11","guid":{"rendered":"https:\/\/thebluemanakin.com\/faq-crypto\/what-is-the-blockchain-and-how-does-it-work\/"},"modified":"2023-02-27T16:35:43","modified_gmt":"2023-02-27T16:35:43","slug":"what-is-the-blockchain-and-how-does-it-work","status":"publish","type":"page","link":"https:\/\/thebluemanakin.com\/en\/faq-crypto\/what-is-the-blockchain-and-how-does-it-work\/","title":{"rendered":"What is the blockchain and how does it work?"},"content":{"rendered":"\t\t
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What is the blockchain and how does it work?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What is a block?<\/strong><\/p>\n

In computing, a block is the smallest amount of information or data that can be transferred in an input or output operation between a computer\u2019s main memory and peripheral devices or vice versa. Generally, the physical size of the data block is larger than the logical record.<\/p>\n

than the logical record.\u00a0By linking several blocks together, a blockchain is formed, each block has a specific and immovable place within the chain, as each block contains hash information from the previous block. The complete chain is stored in each node of the network that makes up the\u00a0blockchain<\/a>, so an exact copy of the chain is stored in all the participants of the network.<\/p>\n

What is it used for?<\/strong><\/p>\n

In the blockchain, a block is a concept designed to optimize a process, for example, Bitcoin has dozens of transactions per second. Validating each of these transactions individually would be completely unfeasible and would be a long and tedious process.<\/p>\n

It can be said that a block contains a series of instructions and operations that are programmed to perform a certain process and also contains information on the hash of the previous block to connect and form a blockchain.<\/p>\n

How is it generated and what does a block contain in a blockchain?<\/strong><\/p>\n

In blockchain technology, a block is a concept designed to optimize the validation process of the transactions made.<\/p>\n

In a bitcoin blockchain, each block is generated by the Proof of Work (PoW) system, when the computer (or several of them) solves the system or puzzle posed automatically by the web.<\/p>\n

The fundamental structure of a block is a header with data from the previous block and data from the transactions that have been made in the new block, adding other data such as a timestamp (timestamp) and a nonce (a number that can only be used once).<\/p>\n

With all the transactions a substructure called a Merkle tree is generated, which is a summary of all the transactions that have been made in a block, resulting in a Merkle root, which is what is added in the block to reference all the transactions.<\/p>\n

If a blockchain is compared to a ledger, each block would be a page of that ledger where all transactions are recorded.<\/p>\n

These blocks usually have different conditions or rules to be generated, and maximum block size is established.<\/p>\n

This may depend on the structure of the blockchain and it is also established how often a new block is created.<\/p>\n

Is it unique to cryptocurrencies?<\/strong><\/p>\n

This technology is not exclusive to\u00a0cryptocurrencies<\/a>, since it can be used basically in any type of information that needs to be preserved intact and must remain available. Moreover, since this information is encrypted, its confidentiality is guaranteed, since only those who have the key will have access to it.<\/p>\n

Due to this, currently, the demand for this technology has increased since it offers benefits for all types of companies or organizations regardless of their line of business, such benefits are:<\/p>\n