Blockchain: What Is It And How Does It Work?

Due to the pandemic, the popularity of cryptocurrency across the globe has been fueled and seen to be steadily growing as new platforms arise, allowing anybody to learn how it works and how they can utilize it. Furthermore, the introduction of various play-to-earn platforms has played a significant role in increasing the appeal of the so-called “Crypto World”among Millennials and Gen Zs, especially the Philippines.

As the Philippines embraced cryptocurrency, it paved its way to make the country one of the globe’s fastest adopters of crypto assets. Through their worldwide and digital connections, many individuals and corporations have invested in various cryptocurrency trading in the Philippines.

Currently, there are high performing cryptocurrency trading platforms in the Philippines, such as:

As the Crypto World becomes more accessible for everyone, new technology has been created to ensure that all end-users’ transactions are secure and safe to maintain a crypto-friendly environment.

When talking about reliable and trustworthy digital transaction technology, Blockchain is on the frontline. Blockchain is a data storage method that makes it hard or impossible to alter, hack, or manipulate information. It is a digital transaction record that is duplicated and distributed throughout the Blockchain’s whole network of computers.There are several transactions included in each block in the chain.Every time a new transaction occurs, a record of that transaction is recorded to each participant’s ledger.

Blockchain is like a distributed ledger technology in which transactions are recorded using a hash, an immutable cryptographic signature. Distributed Ledger Technology (DLT) is a decentralized database that various people administer.

Blocks, nodes, and miners are the three fundamental concepts of blockchain.

  1. Blocks.It consists of data, nuance, and hash.
  2. Miners. The ones who create blocks through mining.
  3. Nodes.Electronic devices that maintain the network’s functionality by storing copies of the Blockchain.

But, how is Blockchain different from Bitcoin and cryptocurrency?

Blockchain is frequently used in conjunction with Bitcoin because it refers to the cryptocurrency’s technology. Blockchain and Bitcoin, on the other hand, are not the same thing. Bitcoin is a peer-to-peer electronic payment system or digital money that is decentralized. Meanwhile, Blockchain is a system for storing bitcoin transactions in blocks and safeguarding them with an irreversible cryptographic signature. Blockchain technology is used to power a variety of cryptocurrencies, including Bitcoin. Beyond bitcoin and cryptocurrencies, Blockchain offers a broader range of applications.

With that, when talking about cryptocurrencies, these are digital or virtual currencies protected by encryption, making counterfeiting and double-spending practically impossible. People can use these digital currencies or digital versions of cash (tokens) to purchase goods and services. In contrast to cash,crypto relies on Blockchain to serve as a public ledger and a stronger cryptographic security mechanism, ensuring that online transactions are always recorded and protected. Examples of known cryptocurrencies are Bitcoin, Ethereum, and Litecoin.

For more information about blockchain technology, read the infographic by Coexstar provided below:

Blockchain: What Is It and How Does It Work?

By admin
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