We all know how we exchange our money for goods and services. We earn money by doing our job. This is the classic structure of how transactions are organised, which is managed by centralized banks. The bank is the managing part in this transaction, they will monitor who bought something, at what place, and who earned money with this transaction. But who manages our transactions when we buy something with Bitcoin or other cryptocurrencies? Crypto transactions are managed and monitored by the blockchain, and in this article you will read everything about it!
The simple version
All the transactions in the world need to be captured, for a well working system. When you transfer your money to someone else, the bank ensures to manage this transaction. In cryptocurrencies, the blockchain is your ‘bank’. Not exactly, but it is also the manager of the transactions in crypto. The blockchain saves all the transactions that have ever been done with cryptocoins.
The blockchain is collecting all the transactions that have been done. All the transactions are caught up in a block, these blocks are filled with the new transaction and with the footprint of the previous block. That’s why you call it the blockchain, it is literally a chain of blocks.
What an invention
The blockchain is not only invented for transactions in crypto, you can also save your personal and important data. So simply said: the blockchain are signed blocks with saved information. Only the people with access have access.
The best part of this chain is that there is no central regulator or controllers, all the blocks are in-line with each other. This means that all the users have a copy of the entire chain and there is no single owner of the data. This ensures a higher level of protection in case of a hack or system failure.
The blockchain stands for efficiency and safety, not only in Crypto.
The blockchain is a data protection base where anything can be saved. We already knew that because of the many networks every action is checked by all the computers, and stored on all devices. When there is a mistake found in one of the actions, fraud and crimes are easy to be found. But the blockchain is more than a database for only crypto. Hospitals and other companies with sensitive information are using it to save all of their data. They won’t disappear and it’s easy to share with the right people. Transparency for your patients is very valuable.
The need for the blockchain
Since we now know what the blockchain is, we can embrace it a little bit more in our daily lives. It’s not necessarily crypto-driven, like most people think, it’s actually very useful. We think that the blockchain keeps growing!
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To your Trading Success ❤️🤖