A popular belief about cryptocurrency was that it would be a big fail but the recent returns of Bitcoin and altcoins proved all of us wrong.
What is Cryptocurrency?
Cryptocurrency is a digital currency whose ownership and transactions data are recorded on an electronic ledger.
In fact,Guest Posting this electronic ledger is a cryptocurrency’s blockchain that updates together on over 10,000 computers around the world.
Further, the protocol defines the creation and proof for the transactions of cryptocurrency
In other words, the protocol is a list of rules that define how the process will carry out to update the task into the ledger.
Moreover, the transactions are in the form of unique codes and secured by cryptography principles.
Cryptography allows the transactions such as creation, change of ownership, etc. to record in various databases through blockchains
But, the blockchains can be public or private.
If it is public, anyone can write the list of transactions and it doesn’t have any gatekeepers to approve or reject the parties
If it is private, then the allowed gatekeepers have full authority to approve or reject parties to carry out any transactions.
For eg: Bitcoin and Etherum belong to the public blockchains.
The huge expansion of crypto has created an entirely new and global industry.
How does Blockchain technology works?
At first, the term “Blockchain” looks very hard to figure out, this is why most of us don’t attempt to know about it.
But, it’s easy to know about it as it is simply managed by software running on computers that communicate with each other forming a network.
The following tasks have been performed by the network:-
Connect with other members in the network
Download the blockchain from other participants
Store the blockchain
Search for the new transactions
Validate and store those transactions
These Blockchain stores data in batches called blocks.
Each block is like a page of a digital ledger or estate planner record book to form a stable linked line in a sequential way.
Each block consist of three elements:
A block’s data contains the details about the transaction including sender, receiver, number of coins, and so on.
A hash in the blockchain is something like a fingerprint or signature which is unique in nature.
3. HASH OF THE PREVIOUS BLOCK
The last element makes a blockchain become secure.
Thus, the block of transactions has a date and time stamp that need the permission of everyone to alter.
How secure to do cryptocurrency transactions?
Security is one of the most essential factors to do any transactions.
Such transactions involve banks and third parties to secure the transactions.