Transaction block

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A transaction block, often simply called a block, is a fundamental component of a blockchain. It is a digitally recorded collection of transactions that have been processed, verified, and bundled together. Once a block is filled with transactions, it is cryptographically sealed with a hash and added to the end of the existing chain of blocks, hence the term “blockchain.” Each new block contains a reference (the hash) to the previous block, creating a chronological and immutable link between them.

The process of creating blocks involves network participants (miners in Proof-of-Work systems or validators in Proof-of-Stake systems) who gather pending transactions, validate them according to the network’s rules, and compete to add the next block to the chain. Blocks typically include a block header, which contains metadata like the block’s unique hash, the hash of the previous block, a timestamp, and the Merkle root of the transactions within it. This structure ensures the integrity and security of the transaction history, making it extremely difficult and computationally expensive to alter past transactions once they are confirmed in a block and subsequent blocks are added.

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