BLOCKCHAIN ASSIGNMENT

NAME: Mukhdoom Farid ID: 024-18-110695

EXPLANATION:

 In the first step, a user requests a transaction to be made to anybody in the network. The
transaction then is broadcasted to a P2P network with the help of nodes.
 In the second step, a block is created that represents the transaction, meaning a specific amount
of cryptocurrency to be transferred is made. Miners make new blocks on a chain through a
process called “Mining”.
 This block is then sent to every node present in the network or chain.
 In the third step, the nodes then validate the transaction and user’s status with the help of some
known algorithms. In order to make sure that the transaction is being made under fair
circumstances. In a blockchain, each block has unique Hash and Nonce.
 For validation and authentication, miners who validate the transaction get rewarded for their
proof of work. Which means that they get some amount of the same cryptocurrency, which they
are working on. (Bitcoin uses this proof)
 This transaction, that was just validated, is now in a certain block. Which is now eligible to be
added in a pre-existing chain. Meaning, this block is now free to make the transaction.
 In the final step, we have completed all the necessary steps to authorize and validate a
blockchain transaction. This transaction is now added to block, this block is now added to a
blockchain. And the transaction is completed.