1. Whenever a new transaction takes place, a new block is created
2. A new hash value is created each time a new block is created
3. The hash value includes a timestamp, which identifies when an event actually takes place
4. Blocks are connected in a chain, with each block pointing to the previous block
5. If a block is changed, the hash value changes, invalidating all subsequent blocks
6. Proof-of-work ensures it takes 10 minutes to determine the necessary proof-of-work for each block before it can be added to the chain
7. Miners get a commission for each new block created, regulating the creation of new blocks
8. New blocks are sent to each computer in the blockchain and checked for correctness before being added
9. New network users get a copy of the entire blockchain system