How does the block chain algorithm ensure the immutability of transactions in cryptocurrencies?

1 answers

• Nov 24, 2021 · 3 years ago
  The immutability of transactions in cryptocurrencies is a fundamental feature provided by the blockchain algorithm. It is achieved through the use of cryptographic hashing and decentralized consensus. Each transaction is recorded in a block, and the block is given a unique identifier called a hash. This hash is calculated based on the data in the block, including the transaction details and the previous block's hash. Any change to the data in a block would result in a different hash value, breaking the chain of blocks and rendering the tampered transaction invalid. Moreover, the blockchain is maintained by a network of nodes, each independently verifying and validating transactions. This decentralized consensus mechanism ensures that any unauthorized changes to the transaction history would be rejected by the majority of nodes, preserving the immutability of transactions in cryptocurrencies.
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