ᐅ Block in Cryptocurrency: What Is It? ⚡ Structure & Features

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Block in Cryptocurrencies – What Is It?

Block in Cryptocurrencies – What Is It?

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The number of transactions processed in a cryptocurrency network depends on an important parameter — the block size. Each block is a link in the cryptocurrency chain, forming a sequence that contains all the information about transactions in this blockchain. The information in a block cannot be changed or erased; it is stored forever.

The Concept of a Block in the Blockchain Network

A block — is a link in the blockchain, similar to an accounting ledger. Each block contains records of the time and volume of a specific transaction, as well as information about the block that immediately preceded it. Such records reflect details of user transactions — purchases and sales of cryptocurrency. To make an entry, the user needs to pay a fee. The more people who want to make a transaction, the higher the fee. Transactions with higher fees are given priority for inclusion in the block.

Block Parameters and Its Properties

Blocks can be classified according to the following criteria:

frequency of new block creation — miners mine a new block every few minutes;
block fill rate — depends on the current number of transactions;
maximum size — usually, a block has a size of several megabytes;
block reward size — part of the coins is always transferred to miners for processing transactions.

Block Structure and Methods of Its Creation

Blocks have a simple structure — they consist of a unique header and a list of transactions. Miners take information from the block and start processing it using computational power. Their task is to find a hash, which is the desired combination. Then, network participants must agree, and the block is recorded in the blockchain, while miners receive a reward for its creation.

Each block is stored simultaneously on thousands of devices, making it impossible to tamper with. This principle ensures virtually eternal storage of transaction data within a specific blockchain.