In my previous blog talks about what is Blockchain, In this blog let me try to explain how blockchain works.
Take a scenario where you want to send a money to your friend or business partner through blockchain.
Below are the steps takes place
- You have raised a request to send money to recipient.
- Request will be broadcasted to decentralized peer-to-peer network, which is basically computers across the globe.
- The node will validate your request against Smart Contract – in this case node verified whether you have sufficient fund to transfer.
- Once node validates the request, other peer nodes will accept the verification.
- Once multiple nodes verifies the transactions in Blockchain network then new block gets added to chain and this new block gets replicated across all the nodes in the network.
- Your request is processed and recipient will receive the money.
- All this steps happens in less than 10 min compare to bank which takes days.