Transactions
Transaction creation: A user initiates a transfer (e.g., sending Bitcoin) using their private key.
Broadcasting: The transaction is sent to the peer‑to‑peer network.
Validation: Nodes check if the sender has enough balance and if the digital signature is valid.
Block formation: Valid transactions are grouped into a block.
Consensus: Miners (Proof‑of‑Work) or validators (Proof‑of‑Stake) compete or collaborate to confirm the block.
Permanent record: Once added, the block becomes part of the chain, immutable and transparent.This process ensures trust without a central authority — every transaction is verifiable by anyone.