A Bitcoin Block is a file which contains the information that confirms all previous bitcoin blockchain transactions as well as all or the majority of pending transactions for the previous 10 minutes within the current block.
There is a new block created every 10 minutes and it is chain-linked to the previous block. Because each block looks back at the previous block to acknowledge the blockchain is true, it is then linked to the previous block in that sense.
In another topic we discuss ‘Blockchain’ and in this topic I am trying to just describe and explain a block but it’s difficult because both topics are intertwined like a lot of these topics really; so forgive me if I sometimes explain things a few times in different ways. Hopefully it will help you to understand better regardless.
Anyway so where was I……Oh yes, so blocks are like real life paper ledgers but digital and unalterable. They record all transactions and cannot be wiped clean or re-written. Blocks are mined by Bitcoin Miners which we go into detail about within this document. The mining basically means acknowledging transactions and verifying they are correct through ‘proof of work’ which we also go into detail about within this document.
Linked to each block is a mathematical equation. This equation is mined or ‘attempted to be solved’ by the network in order to receive a payout of Bitcoin as a reward. As stated before the incentive is what makes the transactions become verified. As the miners try to solve this equation they are in fact processing the transactions of the current block and in return for their work receive an amount of Bitcoin as a reward.