Blocks

The  Blockchain is, as its name suggests, a construct of blocks linked together like a chain. The blocks are therefore a very central element of the technology. The blocks bundle and store transactions and provide information about all past and current ownership relations of e.g. Bitcoins. To ensure that the data and transactions are unchangeable, the blocks are arranged in a chronological order and are all connected by a hash [1].

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Each block consists of a header and a content part. The content part receives the data of the validated transactions from the block and a timestamp. The header part only receives the hash value, which was encrypted using a hash algorithm. Bitcoin uses the SHA-256 algorithm [2]. A new block is created approximately every 10 minutes, depending on how quickly the proof of work method is completed [3].