Here you will learn about Blockchain technology, how it interferes at cryptocurrencies and their uses that go far beyond making transactions safely and reliably.
What is Blockchain?
Blockchain technology is nothing more than a public ledger that records a virtual currency transaction, so that this record is reliable and unchanging.
The Blockchain records information such as the amount of cryptocoin traded, who sent it, who received it, when this transaction was made and where in the book it is recorded. This shows that transparency is one of Blockchain's main predicates.
How do you store the data?
It stores the information, set of transactions, in blocks: each block with a timestamp. Each time period (10 minutes in the Blockchain), a new transaction block is formed, which binds to the previous block.
How is the network formed?
The blocks are dependent on each other and form a chain of blocks (that’s why it is called Blockchain). This makes it the perfect technology for recording information that needs trust, such as cryptos transactions.
The Blockchain network is made up of miners who check and record transactions in the block.
To make this possible, miners lend computing power to the network. As an incentive to continue collaborating and making the network sustainable and safer, they receive a reward in digital currencies.
How is the transaction validated?
The miner can only add a transaction to the block if the simple majority (50% + 1) of the network agrees that the transaction is legitimate and correct. The name of this is the consensus of the Blockchain network. Two block chains can be formed at the same time, the deadlock will be resolved when the network needs to choose one of the chains.
In the end, wins the chain that has the most work. In short, Blockchain technology is a public, distributed ledger that records all virtual currency transactions in a block chain that anyone can participate in. The information recorded on it is reliable, unchanging and transparent as long as most of the network remains honest.
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