How Does Blockchain Technology Work?

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Digital records are combined into "blocks", which are then linked cryptographically and chronologically into a "chain" using complex mathematical algorithms. Each block is associated with the previous one and contains a set of records. New blocks are always added strictly to the end of the chain.

The encryption process, known as hashing, is performed by a large number of different computers running on the same network. If, as a result of their calculations, they all receive the same result, the block is assigned a unique digital signature (signature). As soon as the registry is updated and a new block is formed, it can no longer be changed. Thus, it is impossible to forge it. You can only add new entries to it. It is important to consider that the registry is updated on all computers on the network at the same time.