How does Blockchain Transaction Process occur?

Blockchain is a cutting edge technology. Blockchain is nothing but a distributed database which every connected node has on the network.

Courtesy Euromoney

Lets dive into the Transaction process of Blockchain.
1- Authorization:

First of all, a transaction is requested and this transaction is verified by Private key. The user who request for transaction has this key. Without this key you can’t request any kind of transaction.

2- Authorization:

After the transaction is authenticated. Now, it is required for it to be approved before adding to the chain. Now, this step is done by consensus which is actually an algorithm. This means that majority of nodes of the blockchain network has to be agreed for this transaction. The nodes will get reward for it. This is know as “Proof Of Work”.

Proof of work isn’t that effective. Because large firms buy a lot of machine(nodes) and then connected them to the blockchain network. That’s why, they have a lot of share in the network. To stop this kind of one side distribution, Blockchain has adopted Proof Of Stake validation consensus protocols. According to this, participants must have a stake in the network so that they can select, verify and validate. Now, Blockchain has included the “smart contracts” which automatically execute transactions when certain conditions met.

After authorization, the block which is actually a piece of data is added to the chain and then this addition of block to the chain or you can say this transaction information distributed to all nodes. So, that anyone can verify it using public key