Blockchain is a distributed and decentralized database (ledger) that keeps on updating digital records of "who owns what". Unlike the traditional database, this distributed ledger has a network of replicated databases which are in sync with the internet and visible to everyone in the network. When a transaction is carried out between two nodes in the network, it is encrypted and spread onto the blockchain network. Miners (members in the network with high levels of computational power) use consensus algorithm to hash the transaction till the result meet the nonce value..

Then, the history and digital signatures of both sender node and receiver node are verified. The miner who completes rehashing and verification process first will be rewarded. In the final stage, all the transactions which completed these processes in last ten minutes will be rehashed into another new hash value called Merkel root into a block and that block will be added into the ongoing chain.