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_Blockchain Works Step by Step.pptx

Blockchain works by creating a decentralized, secure, and transparent system for recording transactions.

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_Blockchain Works Step by Step.pptx

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  1. HOW BLOCKCHAIN WORKS STEP BY STEP www.lbmsolutions.in

  2. Introduction to Blockchain • Definition: Blockchain is a decentralized, distributed ledger technology that records transactions across multiple computers. • Key Features: • Immutable: Once recorded, data cannot be altered. • Transparent: Transactions are visible to all participants. • Secure: Uses cryptographic techniques to protect data. www.lbmsolutions.in

  3. Step 1: Initiating a Transaction • What Happens: • A transaction is initiated by a user (e.g., sending cryptocurrency, recording a contract). • The transaction includes details like sender, recipient, and the amount or data. • Example: Alice sends 1 Bitcoin to Bob. www.lbmsolutions.in

  4. Step 2: Broadcasting to the Network • What Happens: • The initiated transaction is broadcast to a network of nodes (computers) in the blockchain network. • Each node receives and validates the transaction based on predefined rules. • Purpose: Ensures the transaction’s legitimacy and prevents fraud. www.lbmsolutions.in

  5. Step 3: Validation by Nodes • What Happens: • Nodes validate the transaction through a consensus mechanism: • Proof of Work (PoW): Solving complex mathematical puzzles. • Proof of Stake (PoS): Validators are chosen based on stake ownership. • Once validated, the transaction is added to a pending list. • Key Component: Miners or validators play a critical role in this step. www.lbmsolutions.in

  6. Step 4: Adding to a Block • What Happens: • Validated transactions are grouped into a block. • The block includes: • A timestamp. • The list of validated transactions. • A reference to the previous block (hash). • Miners compete to add the block to the blockchain. www.lbmsolutions.in

  7. Step 5: Block Confirmation and Addition • What Happens: • The first miner/validator to solve the puzzle or validate (depending on the mechanism) adds the block to the blockchain. • Other nodes verify and agree that the block is valid. • Key Outcome: The block is added to the chain, and the blockchain is updated across all nodes. www.lbmsolutions.in

  8. Step 6: Completion of Transaction • What Happens: • The transaction is now part of the blockchain and is immutable. • Both the sender and recipient can verify the transaction’s success. • Final Result: The ledger is updated, ensuring transparency and security for all participants. www.lbmsolutions.in

  9. TOUCH E-275,Sector 75, IT CITY, Sector 75, Sahibzada Ajit Singh Nagar, Punjab 140308 +91 84484 43318 info@lbmsolutions.in Phone Number Email Adress Address GET IN

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