You might have heard of it but might not know it; well, in this article by Kucoin, we will help our readers be informed about blockchain technology, which is the backbone of cryptocurrency market.
Blockchain records the information digitally; it stores the record of crypto transactions, also maintaining and securing the form; in simple terms, it works as a ledger that can be shared and remains unchained. Blockchains offer trust and security of the generated data without a third party.
As the traditional data is stored in rows and columns, the data in blockchains are stored in blocks strung together, giving it the name Blockchain.
As we know that blockchain is decentralized finance (DeFi) and bedrock for cryptocurrencies, it is the most secure and transparent form of finance; without information being altered, if any hacker tries to change some information, they would have to modify other blocks, too; this would be very hard for them considering the amount of time, money and resource they would have to put into making it successful even if they are successful in trying to manipulate the data stored they would be able to make a change to the majority of the blocks as more than 10000 transactions are carried out each second making it impossible for them to be successful in this operation.
How It Works
We have broken down the process more straightforwardly for viewers to understand. First off, when you make a transfer from A to B, the transaction is broadcasted to all the network that is connected to your account, such as PC, laptops, and mobile this whole transaction, when confirmed, is called a block following that the blocks updates its copies and adds to its chain which is unchangeable and transparent the final step is the money moves from A to B.
Companies That Are Using Blockchain
Several firms are using blockchain technology across the globe. The most famous companies are IBM, Microsoft, Oracle, Intel, Walmart, Goldman Sachs, and many more have known its significance. This technology has helped them make their activities more accessible than ever.
Benefits Of Blockchain
There are many advantages of blockchain technology; below, we have mentioned some of those.
- It provides an alternative to the traditional banking system for individuals and institutions alike.
- The cost reduction is also one of the most beneficial blockchains as there is no third-party intervention.
- More accurate as it requires less involvement of humans in the verification process.
Private And Public Blockchain
A public blockchain can be joined without permission. A node can be built freely as it is an open network is necessary that it should be secured with cryptography and proof of work (PoW).
A private blockchain can only be joined with permission, and nodes must be approved before joining.
I hope you have got the idea of blockchain; Kucoin wants the beginners who want to step into the crypto industry and want the grip on crypto mining pool to be well informed regarding every topic related to these emerging technologies.