How blockchain technology works?
The blockchain technology works by means of a peer-to-peer network of decentralized nodes. There is no central server on this network. But instead, every computer forms a node that contains and operates the shared database that makes up the chain.
Public key cryptography is used to append a digital signature on every transaction carried out. Public key cryptography entails the use of two separate keys, a private key and a public key. These keys are related but being mathematically generated are impossible to guess. They authenticate the identity if the sender and also verify that the transaction has not been tampered with.
For the blockchain to work, all the different nodes must be synced at all times. This is done using a consensus system whereby the concurrence of the majority of nodes confirms transactions and updates the ledger.
Mining is another important feature of the blockchain. Miners compete to solve mathematical puzzles and as a result generate new blocks to add to the chain.