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  • Writer's picturePatrick Aloisio

How does Blockchain work?

Updated: Jun 20, 2022

Originally posted on Twitter, you can view the full thread on Twitter here

how does blockchain work

Everybody’s heard the term blockchain with Bitcoin and crypto. But what does it really mean?

Actually, the explanation is much more simple than you think...

Each crypto might be slightly different but we are going to use Bitcoin for this example. Each time there’s a transaction, I send Bitcoin to you, you send Bitcoin to your friend, your friend spends it on an Only Fans account, whatever the transaction might be. All of those individual transactions going on have to be logged by the Bitcoin network so it can keep track who has what.

The Bitcoin network lumps a certain number of recent transactions together in a big group. This group is called a block. Once the network checks all of the transaction in the block to make sure they’re all correct, it adds them to the history of approved blocks.

how does blockchain work

The approved blocks are ordered from oldest to newest, and since they reference the ones immediately before and after, they form a chain of blocks...

And voila! That’s where the term blockchain comes from! It’s really just a long receipt of transactions.

That’s not so tough to understand, check out our other simple explainers for more breakdowns. Follow for more plain easy analysis.

how does blockchain work

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