After the encryption of information at Raj’s end is, a message for verification goes to all the nodes present on that blockchain network. Now, all of the nodes need to check for all the important parameters related to that transaction.
All the nodes in the network will check on points like; Does Raj have enough balance i.e. at least 50 BTCs? Is Raj a registered node? Is Shalini a registered node etc. After they check all these parameters they verify the transaction. Also, note that a transaction is verified completely only when all the participant nodes verify it.
STEP 3: Formation of a new block
As a typical blockchain network has got a lot of nodes, many transactions get verified at a time. These transactions are saved in a mem pool and multiple such mem pools together form a block. That is, a number of verified transactions stack up in mem pools and get stored in a block. This is how a new block is formed. The limit of one block in a bitcoin network is to store up to 1MB of transactions.
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