What is blockchain? It’s a system that records data and also the framework upon which all cryptocurrencies are built. One thing that makes blockchain revolutionary is the fact that it makes data almost impossible to change or hack.
How Blockchain Works In Cryptocurrency
In the world of cryptocurrency, blockchain serves as a digital public ledger of transactions, which is shared across the entire cryptocurrency payment network. For your information, every cryptocurrency comes with an established peer-to-peer payment network across, which it circulates.
What Is a Peer-To-Peer Payment Network?
In digital networking, a peer-to-peer network is a network in which each computer can act as a server for the other computers. That makes shared access to files possible without a central server.
Having said that, every cryptocurrency company will build its peer-to-peer payment network using a unique(own) coding language and cryptographic(encryption) protocol.
What is Cryptographic/Encryption Protocol?
For starters, a cryptographic protocol is a set of rules that guide security-related functions and apply encryption methods to ensure data is un-hackable or unchangeable. It is because of blockchain that every cryptocurrency network has its unique encryption protocol.
The Bitcoin Network
In the bitcoin network, users send and receive bitcoins, by broadcasting encrypted data across the network. Bitcoin transactions depend on digital wallets that hold and retrieve the coins. It is in the same manner that all other trusted cryptocurrencies like Ethereum, Tether, and XRP work.
What Is a Cryptocurrency/Digital Wallet?
A cryptocurrency wallet is an app that lets you store and retrieve your cryptocurrencies each time you want to spend them. You will need to have a bitcoin wallet to be able to use Bitcoin.
In a nutshell, blockchain is a secure framework upon, which cryptocurrencies are built. It serves as a system that records data and secure, public ledger that all computers within a cryptocurrency network can access.
Blockchain records all confirmed transactions in a cryptocurrency system. This cryptocurrency framework allows crypto or digital wallets to calculate their spendable balance so that the network can verify new transactions can be verified to ensure they are authentic and owned by the spender.