Block (Cryptocurrency)
A block is a unit of data in the cryptocurrency world. It contains a collection of digital records about transactions and storage on a distributed ledger, known as the blockchain.
The block is mined by miners, who use specialized computers to solve complex mathematical equations which are used to verify and record transactions onto the blockchain. This process is called mining or proof-of-work. Miners get rewarded for their efforts with newly created coins from the network that they help secure, as well as transaction fees from users making payments over its network. Blocks form an unbroken chain of digital information extending back to when the first cryptocurrency was launched – thus earning it’s name: “blockchain”.
Blocks are composed of three components: a header, transaction data, and cryptographic hash values which link them together forming an immutable chain. The header includes metadata such as timestamping; transaction data contain relevant details like sender address and receiver address; while hashes provide cryptographic security by linking each block in order according to time so that no one can edit previous blocks without changing all subsequent ones or being detected doing so through consensus algorithms such as Proof-of-Work (PoW).
A new block is generated every 10 minutes on average on most cryptocurrencies networks – this rate varies depending on various factors including difficulty in finding valid solutions for PoWs or randomness built into some consensus protocols like Proof-of-Stake (PoS). Once added to the blockchain these blocks become part of history forever unable to be altered retroactively due to decentralized trust secured through consensus algorithms like PoW & PoS mentioned earlier.
