The basic architectural components of a blockchain are nodes, transactions, blocks , and the consensus mechanism.
- Nodes: Nodes are the autonomous computing units that form the peer-to-peer blockchain network. The blockchain is stored on each node of the network.
- Transactions: A transaction generally contains details about the exchange of some information or digital assets that are recorded in a blockchain. The transactions are bundled into a block and added to a blockchain. Transactions are the building blocks of the blockchain.
In case of Bitcoin, a transaction is an exchange of value from one address to another.
- Blocks: Blocks are collections of transactions that are bundled together to be added to the blockchain. Blocks are created by the process of Mining. You'll learn more about Blocks and the Mining process in the later topics.
- Consensus Mechanism: It is a set of rules that are satisfied to verify and add transactions to blockchain. There are several consensus algorithms that are used to verify transactions like Proof of Work and Proof of Stake.