[Blockchain] Something we should know about Blockchain

When joining cryptoconomy, I know that the more knowledge I understand, the less uncertainties I get. Following this, I found more information about blockchain to get some basic literature about this field. On this post, I will share some basic about blockchain that I collected recently.

1. What is the blockchain?

Blockchain is most well-known as the key of all cryptocurrency transaction. It is innovative database technology and offers the potential to serve a very wide range of applications. With the born of blockchain, it help the online transaction is more difficult to hack or cheat by those who want to take benefit from others’ accounts.

Moreover, blockchain record information about cryptocurrency transaction, NFT owners and DeFi smart contract. It is immutable ledger that facilities the processing of recording transactions and tracking assets in a business or economy network.

2. How does the blockchain work?

It is necessary to understand how the blockchain works. I believe that more information will let me understand the rule and I can make the right decision on investment. Here is the way that blockchain is working in reality.

– Each data is an individual block.

– A fresh data is added to the network periodically when the new transaction is make. At that time, a new “block” is created and added to the “chain”.

– A majority of nodes must verify and confirm new data block to make sure the transaction is correct and legal. On cryptocurrency, that will ensure new transactions are not fraudulent.

– This process cannot be changed by people as working on spreadsheets or normal documents.

– Blocks are securely links together. Every block is connect to the ones before and after it, forming a secure digital chain from the beginning of the ledger to the present.

– There has private blockchain and public blockchain. The private blockchain is controlled by an organization or group while on public blockchain, anyone can participate. This meaning with public blockchain, anyone can read, write and audit the data but it’s too difficult to alter the transactions logged in it.

GC.Joyce

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