Ever wondered how the mining process on a blockchain works, or how your transaction gets confirmed and is added to the blockchain? So have I. And since I couldn’t find any clear step by step explanation of this process, I decided to write one myself. Here is how a blockchain transaction is processed on a blockchain, in seven steps
.Step 1: A user signs off on a transaction from their wallet application, attempting to send a certain crypto or token from them to someone else.
Step 2: The transaction is broadcasted by the wallet application and is now waiting to be picked up by a miner on the according blockchain. As long as it is not picked up, it hovers in a ‘pool of unconfirmed transactions’. This pool is a collection of unconfirmed transactions on the network that are waiting to be processed. These unconfirmed transactions are usually not collected in one giant pool, but more often in small subdivided local pools.