Hi , morning folks welcome back to our daily wrap in the crypto ecosystem if you missed the previous post feel free to revisit to have a better understanding...stay with me till the end
BLOCKCHAIN TECHNOLOGY
Blockchain is a distributed, decentralized public ledger. We can say, blockchain simply means chain of blocks. This simply means digital information (“the block”) stored in a public database (“the chain”).Blocks on a blockchain has three parts:
a.Blocks show information like date, time and amount.
b.Blocks store information about who carried out the transaction by using digital signature instead of identifiable names.
c.Blocks store information that makes them different from other blocks by the use of a unique code called HASH.
HOW CRYPTOCURRENCIES WORK
Cryptocurrencies can be sent directly between two parties through the use of public keys. One interesting thing about this is that this transfer incurs very minimal transaction fees and solves the problem of steep fees charged by traditional financial institutions.
PROPERTIES OF A CRYPTOCURRENCY
1.Irreversible: After confirmation of a cryptocurrency transaction, it cannot be reversed by anybody. If you send your asset to a wrong address or a hacker stole your asset, the asset is gone forever.
2.Permissionless:Cryptocurrency transaction doesn’t require a permission from anybody before it is carried out. It just requires software which anybody can download and use without any restriction.
3.Secured:Ablockchainis a series of blocks that records data in hash functions with timestamps so that the data cannot be changed or tampered with. As data cannot be overwritten, data manipulation is extremely impractical, thus securing data and eliminating centralized pointsthatcybercriminals often target.Cryptocurrencies are locked in a public key cryptography which makes it impossible to access without the private keys.
4.Pseudonymous:Cryptocurrency transfers occur through public addresses which are not connected to the real-world identities of the users.
5.Fast and across border:Cryptocurrency transactions happen almost instantaneously in the Blockchain network and confirmation occurs in few minutes notwithstanding the distance between the sender and the receiver.
