Questions ยป What is a block?

What is a block?

In cryptocurrencies, a block refers to a collection of transactions that are verified and added to the blockchain network. A block contains a header and a list of transactions that have been validated by network nodes, also known as miners.

The header of a block contains important information, including the block’s unique identification number, a timestamp, and a reference to the previous block in the chain. This reference creates a chronological chain of blocks, which is why the technology is called blockchain.

The process of adding a block to the blockchain is known as mining. Miners compete to solve a complex mathematical problem, and the first miner to solve the problem earns the right to add the next block to the chain.

Once a block is added to the blockchain, it becomes a permanent and immutable part of the network. This ensures the security and integrity of the blockchain, as any attempts to modify or tamper with a block would require an enormous amount of computational power and resources.

Overall, blocks play a crucial role in the functioning of cryptocurrencies by allowing for secure and transparent transaction processing and record-keeping.