Cryptocurrency is powered by a technology called blockchain. It is this technology that ensures the security of online transactions even without the use of third-party intervention. Cryptocurrencies are protected by various algorithms and encryption and cryptography that refer to blockchain technology.
So, do you know what blockchain technology is? It is at the core of the functionality of cryptocurrencies. We need to learn about it to understand how cryptocurrencies work.
What is Blockchain?
Firstly, we can try to understand what it is by its name. Basically, a blockchain is a set of blocks that are connected in an online ledger. Each block contains a set of transactions that have been independently verified by each network.
When there is a transaction, let’s say between A and B. A wants to send crypto to B. This transaction is represented online as a set of blocks. The blocks are then distributed to each decentralised network. If there is approval from the network system, the transaction is valid.
The blocks are then added to an online ledger which provides an indelible and transparent record of the transaction. The cryptocurrency is sent from A to B. You can see the following image for more details.
Cryptocurrency is powered by a technology called blockchain. It is this technology that ensures the security of online transactions even without the use of third-party intervention. Cryptocurrencies are protected by various algorithms and encryption and cryptography that refer to blockchain technology.
So, do you know what blockchain technology is? It is at the core of the functionality of cryptocurrencies. We need to learn about it to understand how cryptocurrencies work.
What is Blockchain?
Firstly, we can try to understand what it is by its name. Basically, a blockchain is a set of blocks that are connected in an online ledger. Each block contains a set of transactions that have been independently verified by each network.
When there is a transaction, let’s say between A and B. A wants to send crypto to B. This transaction is represented online as a set of blocks. The blocks are then distributed to each decentralised network. If there is approval from the network system, the transaction is valid.
The blocks are then added to an online ledger which provides an indelible and transparent record of the transaction. The cryptocurrency is sent from A to B. You can see the following image for more details.
How to Use Crypto?
Each crypto coin has its own function. Not all cryptocurrencies are legitimate in the world. Legitimate cryptocurrencies, such as BTC and ETH can be used to buy goods, trade, or invest. Then, coins issued by certain companies or platforms can be used to shop on those platforms.
For coins that are already legitimate, you can spend them like using regular money. The important thing is that Bitcoin or Ethereum exists as a means of payment.
Conclution
In an increasingly developing era, you also need to keep up with the times. To secure your assets, you can consider buying digital assets in the form of cryptocurrency. Currently, we can buy crypto from various local platforms.
After learning what crypto is, you can start considering buying cryptocurrency. Don’t forget to keep learning everything about crypto so you can determine which assets are the most profitable. That way, you can own digital assets that are safe and prospective.