What is a Block?
A block is a fundamental component of blockchain technology. In the context of cryptocurrencies like Bitcoin, a block consists of a group of transactions that are verified and then permanently recorded on the blockchain. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
Once a block is filled with transaction data, it is verified by a process known as mining (Proof of Work) or validation (Proof of Stake), depending on the cryptocurrency. After verification, the block is added to the blockchain, forming a continuous, immutable chain.
Blocks are crucial for the decentralized nature of cryptocurrencies because they ensure the security and transparency of transactions without relying on a central authority. Each block is linked to the previous one, making it nearly impossible to alter any information once it’s been recorded. For example, in Bitcoin, a block is created approximately every 10 minutes and rewards miners with newly generated Bitcoin.
