How the blockchain works

Knowledge is the best hedge against risk. This applies to Web3 and Blockchain. Let's take a minute to learn how the Blockchain works in real time. After all, the speed and safety of your transactions depend on it.

In the previous articles you already saw that the Blockchain is simply a long string of data blocks. These data blocks contain all the previous transaction data. By now you also know that these blocks are "chained" to each other using sophisticated hashing algorithms that help prevent any and all manipulation of previous data. Nobody can modify the content of the previous blocks.

Now let's see how it all works by sending a DPINR transaction…

Step by step: A DPINR transaction

Step 1. You select the receiver's wallet address and you hit the "send" button on your wallet.

Step 2. Your wallet broadcasts this transaction to the Tron network.

Step 3. Thousands of validators (computers that secure the Tron network) pick up this transaction and carefully check if it's valid. For example if your balance is 1000 DPINR, but you're sending 100,000 DPINR, this transaction won't be accepted.

Step 4. Using a consensus mechanism (called "Proof Of Stake" — POS) these computers verify your transaction as 100% correct.

Step 5. Your valid transaction is bundled with many other transactions and bundled into a block of data. This block is cryptographically secured and attached to the long chain of previous transactions.

Step 6. Now the only thing that remains is to inform all the computers on the decentralized network that your transaction has been processed. When all the computers are "in consensus", your transaction is forever verified on the network.

All of this takes place in just a few seconds. This is the beauty of the Blockchain technology. Not only is it blazingly fast, but it's much more efficient and secure than even the largest centralized servers of any global bank.

What makes the blockchain so secure?

The secret is decentralization. Traditional banks and payment processors use massive server rooms to route global transactions. Just imagine what would happen if just one of these server rooms would break down or become compromised by an attack.

In Blockchain networks, there are millions of these "servers" — scattered all over the world. Literally anyone can join a blockchain network and become a miner (or validator) and help keep this network even more secure and decentralized. Should one (or even 100) of these computers go offline, the entire network will keep working without a cough or a hiccup.

Would you rather have a highly centralized network handling your transactions or would you rather use something that's proven to be 100% antifragile?