After the newly created block has got its unique hash value and authentication through proof-of-work, it needs to be added in the blockchain along with other blocks. It is only when this block gets added in the blockchain will the transaction be complete. That is, Shalini will receive 50 BTCs from Raj.
We know that a block in the blockchain contains a block header and the transaction data. In every block, there is the previous hash value of the previous block and that is how blocks are linked with each other to form a blockchain. When a new block gets added, it gets linked to the open end of the blockchain (i.e. to the block that was added before it).
The blocks are already secured by including the previous block’s hash value in the hash value of the newly added block during proof-of-work. In this manner, blocks containing information or data are linked to each serially and a chain is made which is incorruptible.
STEP 6: Transaction complete
Now, as soon as the block gets added in the blockchain, the transaction will take place and the 50BTCs from Raj’s wallet will be transferred to Shalini’s wallet. The details of this transaction are now permanently and securely stored on the blockchain. Anyone on the blockchain network can fetch this information and confirm the transaction.
This also helps in keeping track of the spendings of Raj so that he does not double spend. If Raj tries to carry out another transaction in the future, the rest of the nodes can check for the past transactions related to Raj. And calculate from the inputs and outputs how much bitcoins should he have in his wallet currently.
If there is enough balance, they will approve the transaction. It is of importance because the blocks in a blockchain only hold the transaction information and not the record of the balance of each node.
Summary
With this, we conclude our tutorial on the working of blockchain. Here, we covered the entire process of how a transaction is made in the blockchain network and how new blocks are added in the blockchain. We hope you were able to understand the working process of the blockchain from these six basic steps. If you have any queries or suggestions regarding blockchain, please leave your comments in the comment section below.
Leave a Reply