DeutschThe blockchain and the technology behind it are on everyone’s lips – especially since Bitcoins and other digital currencies have arrived in the mainstream. There is a lot of half-knowledge about how it works, and yet the technology is often cited or used as the basis for other, new business models. But how exactly does this work?
Infographic: how the Blockchain Works
Here we explain exactly how the so-called blockchain works:
- In the initial situation, person A wants to send money in the form of digital currencies to person B.
- For this purpose, all important information of the transaction is digitally stored in a so-called block.
- The block is then forwarded to all parties (computers) connected to the network.
- In the next step, these parties confirm the transaction as valid.
- After that, the block of the said transaction is attached to the existing chain. This makes the transaction irrevocably and transparently stored and visible to all participants in the network.
- And finally the money is sent from person A to person B.
The blockchain works in such simple and yet efficient steps. It makes it possible to achieve unity in a network that is structured in a decentralized manner.
The Functionality in the Video
Video under CC BY-SA 4.0 license: SRF/Einstein/Christian Bachmann
There are also interesting websites that show the movements and transactions on the blockchain. Here is the link to Blockchain.com as one of the largest providers in this area.
More about the basics of the blockchain.
