You’ve probably heard that blockchain is “immutable” and “decentralized” — but what does that actually mean? Let’s break down how blockchain works under the hood — without turning it into a crypto-induced coma.
🧱 Blocks, Chains & Hashes
At its core, a blockchain is a chain of blocks — pretty straightforward, right?
Each block contains:
- A list of transactions
- A timestamp
- A cryptographic hash of the previous block
This hash acts like a digital fingerprint — unique and tamper-proof. If someone tries to change the contents of a block, its hash changes, breaking the entire chain. That’s like trying to remove a Jenga piece from the middle of the tower — the whole thing collapses.
🔐 What Is a Cryptographic Hash?
A cryptographic hash function takes input data and returns a fixed-size string of characters (like SHA-256 in Bitcoin). This output — the “hash” — is:
✅ Unique (same input = same output)
✅ Irreversible (you can’t reverse-engineer the input from the hash)
✅ Tamper-evident (even changing one comma in the input completely changes the hash)
This is how blockchain secures its data — by creating a “chain of trust” using hashes.
🧠 Consensus: How Everyone Agrees
In a decentralized system, who decides what’s true?
That’s where consensus mechanisms come in.
Two popular ones are:
- Proof of Work (PoW): Miners compete to solve complex math puzzles. First to solve it adds the next block and gets rewarded. (Used in Bitcoin)
- Proof of Stake (PoS): Validators are chosen based on the amount of crypto they’ve staked. Less energy-intensive, and gaining popularity. These systems ensure that everyone in the network agrees on the current state of the blockchain — preventing fraud, double-spending, and chaos.
🔁 TL;DR
- Blockchain = chain of cryptographically linked blocks
- Each block includes a hash of the previous block
- Hashes prevent tampering
- Consensus (PoW/PoS) ensures agreement across the network
That’s how blockchain stays secure, transparent, and trusted — without needing a middleman.
Next up: We’ll explore how these consensus mechanisms compare — and why Ethereum is moving from PoW to PoS. Stay tuned!
Top comments (0)