Blockchain and cryptocurrency
What is blockchain?
How blockchain can be used for secured online transactions?
Blockchain is a decentralized technology and it eliminates the risks of security breaches. The data is not stored centrally anywhere and thus eliminates the data breach risks. The blockchain database is not stored at any single machine or location and the records stored by blockchain are truly public and easily verifiable. Possibility of data corruption is none because of non-centralized version of this information exists.
Blockchain security methods use public-key cryptography. A public key is an address on the blockchain and private key is like a password that gives its owner access to their digital assets.
What are the use of blockchain?
Blockchain technology is widely used for creation of crypto currency like bitcoin. Using blockchain government can speed up their capabilities, and affect functions like education, healthcare and public benefits. Blockchain is a secured and safe solution for government for online financial and non-financial transactions. Government can also use it in voting system to prevent fraud voting. As blockchain is decentralized, it is also capable to reduce corruption.
Relation between blockchain and cryptocurrency
Blockchain is an underlining concept that helps creation decentralized cryptocurrency. Blockchain extends far beyond the world of cryptocurrencies because it is more secure and transparent way of processing all kinds of data.
Bitcoin is very known jargon these days. Bitcoin is cryptocurrency that was made in blockchain. There are so many cryptocurrencies based on blockchain like Ethereum, ADA Cardano, NEO etc.
What is cryptocurrency?
Cryptocurrency is a digital currency that are encrypted and decentralized. Cryptocurrency is transferred between peers and confirmed in a public ledger via a process.
Cryptocurrency coin validity is provided by blockchain. Using blockchain native token or subtoken you can do any dealing lik buying, selling, investing, trading or other monetary aspects.
Cryptocurrency transaction uses decentralized network. In this you don’t have any server. So you need every single entity on the network to do this job.
When transaction occurs, it is unconfirmed and only after a specific amount of time it gets confirmed. It is pending or can be forged. Transaction is only confirmed by miners. When a transaction is confirmed, it is set in stone.
Cryptocurrencies are limited entries in a database that nobody can change without fulfilling specific conditions.
Popular cryptocurrencies are the original Bitcoin, Ethereum’s Ether, Ripple, and Litecoin.
Basics of cryptocurrency.
Public Ledgers: Public ledgers store all the confirmed transaction. Public ledger can access by anyone. Every individual node has a ledger file which gets updated on every single transaction. The identity of coin owner is encrypted. Bitcoin calls this public ledger of transaction blockchain.
Transactions: Transfer coins between two digital wallets is called a transaction. When a transaction is made, it is needed to verify owner’s identity of the wallet so for that wallet uses a cryptographic signature (an encryption of data).
Mining: Mining is the process to confirmation of transaction and adding that transaction to public ledger.