What is blockchain technology and how does it work?
Understanding the basics of blockchain technology.
Blockchain technology is the tech on which cryptocurrencies like Bitcoin and Ethereum are deployed. In a nutshell, "The blockchain" is an open ledger on which transactions are recorded.
Anyone with an internet connection can view and verify transactions on said ledger. The Bitcoin ledger, as an example, records and displays all Bitcoin-related transactions including sent and received tokens, purchased tokens, and so on.
Blockchain technology, for example, makes it possible to execute various financial transactions without the need for intermediaries like banks or credit card companies.
Accuracy and precision
Almost all cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, are secured via blockchain networks. This means their accuracy is constantly being verified by a huge amount of computing power.
The list of transactions contained in the blockchain is fundamental for most cryptocurrencies because it enables secure payments to be made between people who don’t know each other without having to go through a third-party verifier like a bank.
Due to the cryptographic nature of these networks, payments via blockchain can be more secure than standard debit/credit card transactions. When making a Bitcoin payment, for instance, you don’t need to provide any sensitive information. That means there is almost zero risk of your financial information being compromised, or your identity being stolen.
Blockchain technology is also exciting because it has many uses beyond cryptocurrency. Blockchains are being used to explore medical research, improve the accuracy of healthcare records, streamline supply chains, and so much more.