<h3><strong>How Blockchain Works&nbsp;</strong></h3><ol><li><p><strong>Transaction Initiation</strong>: Suppose Alice wants to send 1 Bitcoin to Bob. Alice initiates the transaction, creating a request with the necessary data (e.g., sender, receiver, amount).</p></li><li><p><strong>Transaction Verification</strong>: The transaction is broadcasted to a network of computers (nodes). These nodes validate the transaction using predefined rules (e.g., ensuring Alice has enough Bitcoin).</p></li><li><p><strong>Block Creation</strong>: Once verified, the transaction is grouped with others to form a "block."</p></li><li><p><strong>Consensus</strong>: The network reaches consensus (e.g., Proof of Work), confirming the block is valid.</p></li><li><p><strong>Block Added to Chain</strong>: The block is linked to the existing blockchain, and the transaction is complete. Bob now has 1 Bitcoin, and the blockchain record is updated.</p></li></ol><p><strong>Example</strong>: If someone tries to tamper with the transaction, the cryptographic hash linking blocks together would make it evident that the chain has been altered, alerting the network to the fraudulent change.</p>