Are you a little fuzzy on what a blockchain is?
Things like cryptocurrency and NFTs operate via blockchain technology, but many of us are in the dust when it comes to understanding what in the world “blockchain” really means.
We’re going to give you the nuts and bolts of blockchains today, offering a fundamental understanding of this important technology. You might even feel like engaging with one of the different forms of crypto or NFTs after reading the article.
Let’s get started.
What is Blockchain Technology?
A blockchain is a method of managing and storing secured information. Groups of data called “blocks” are documented and linked securely to the block that came before.
Then, the next block is gathered and secured onto the tail end of the last block. The process goes on and on that way, creating massive stores of information that are organized in this logical way.
The value in keeping information stored this way is in its impenetrable security. Let’s explore that security a little bit more.
Distributed Ledger Technology
Decentralized currencies (cryptocurrencies) utilize blockchains in almost every instance.
Because there is no central agency monitoring security, every computer engaging with the chain serves as a cell of security. Chains use something called “best consensus algorithms.” These algorithms work in relation to every computer in the network to keep up with all transactions of the blockchain.
When someone makes a transaction in these currencies, that transaction is entered into the blockchain. That precise transaction in its specific place in the order of all transactions is lodged. The thing is, the entire blockchain needs to be intact and included in the transaction for it to be approved.
If the algorithm notices that the entirety of the chain isn’t exactly perfect, the transaction isn’t logged.
This is a security measure that ensures no transaction can ever be altered or manipulated. If someone tried to manipulate the blockchain or its memory in any way, their contribution would be refused and the whole system would keep moving.
Even if someone managed to make a change to the blockchain, it wouldn’t matter because the millions of other users on the network have the untampered blockchain and their computers would recognize the alteration, refusing it.
What This Means for Users
The overwhelming benefit of this type of technology is safety. There’s no way that your information or your ownership of things purchased with cryptocurrency can be jeopardized.
You can play NFT games, buy online art, invest in crypto, and spend your money without any worries that it will be tampered with. You can learn more about NFT games and how they work.
Now that you know crypto is safe, it’s worth looking into the different types of NFTs. You might find that this new world of decentralized currency interests you.
Want to Learn More About The Blockchain Network?
We hope our look at blockchain technology was useful to you. There’s a lot more to learn, though. We’re here to help.
Explore our site for more information on different types of blockchains, advancements in cryptocurrencies, insights into the best consensus algorithm, and more.