A SIMPLE EXPLANATION OF HOW TRANSACTIONS ARE VALIDATED ON THE BLOCKCHAIN

It is important to verify and validate transactions before they are added to the blockchain because verification helps maintain the blockchain's core principles of decentralization, security, and transparency.

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🕒 8:25 AM

📅 May 05, 2025

✍️ By web3savvymama

Transactions on a blockchain are validated through a process that typically involves the following steps:

1. Verification of transaction details: Nodes on the network verify the transaction's validity, to ensure that it follows the blockchain's rules and the sender has the necessary funds. Nodes are computers or devices that participate in the network by storing, validating, and transmitting data (such as transactions and blocks) across the blockchain.

2. Cryptographic techniques: Transactions are encrypted and linked to previous transactions, making them secure and tamper-proof.
3. Consensus mechanism: The network uses a consensus algorithm (e.g., Proof of Work or Proof of Stake) to agree on the transaction's validity and add it to the blockchain.

4. Block creation: Once the transaction is validated, a new block is created and added to the blockchain, containing multiple validated transactions. This means that the new block is added to the already existing chain of blocks. 

5 Network update: The updated blockchain is then distributed across the network of nodes, ensuring all nodes have the latest version.

This process ensures the security, integrity, and transparency of transactions on the blockchain.

Now you know what transactions go through before they appear on the blockchain. If this was helpful, please like the post and follow.