What is a transaction block?
The Transaction Block is required for transaction data, which is permanently recorded in file structures called blocks. They can be listed as the individual pages of a recording book (when real estate ownership changes) or as a ledger.
Blocks were organized over time into a linear sequence, also known as a blockchain. New transactions are constantly being transformed by miners into new blocks that are added at the end of the chain, and can never be changed or removed once they are accepted by the network.
Description of the Transaction Block
Each block contains, in addition to other components, an entry in its header identifying several or all previous transactions, and a record of the block immediately preceding the current block.
To create a new block, the miner must solve the task that the network is sending, on his device. Each block has its own unique solution, which is also written in the header of the block.
This task is difficult to solve and requires a lot of time. However, once one of the miners solves the problem, the rest of the network quickly confirms that the solution is correct. For each block there are several solutions — it is sufficient to find at least one of them.
Bitcoin transactions are sent from the sender to the network, and all peers trying to resolve blocks collect the transaction records and add them to the block they are trying to solve.
Miners receive an incentive to take up transactions in their blocks, due to attached transaction fees.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.