How does a blockchain work?

The blockchain is an immutable distributed digital ledger with many use cases beyond cryptocurrencies.

To understand the operation or workflow of block chaining, consider a long series of connected data, organized into blocks that form a chain. Each block is capable of holding a predetermined amount of data; as it is filled, it is forged into the chain and a new block is formed.

whenever you need to secure any money or transfer to another user, you write a blockchain program and both of you send the money to the program. The transaction is sent to a peer-to-peer network consisting of computers known as nodes. Bitcoin’s validation process is performed by miners who are rewarded for their participation in securing the network. The nodes validates the transaction using cryptographic algorithms. It’s that simple.

All the transaction requests are associated with unique digital signatures which along with public keys are used by each node (computer) in the blockchain network to check the authenticity of the source and the transaction. This is how security is managed in blockchain transactions and why it is almost impossible to hack it.