If you’ve ever come in contact with the world of cryptocurrencies, you may have heard that these virtual coins actually function with the help of blockchains which make them essentially impenetrable and perfectly secure.
So what is this blockchain technology and how does it function exactly?
Well, to put it very simply, it is an information storage system (often also called a ledger) in which information cannot be changed or tampered with. You can see why this comes in very handy when it comes to recording transactions.
But this is just one of the unique characteristics blockchain technology has to offer. To find out more, all you have to do is stay with us and keep on reading!
Everything is decentralized
Everyone involved in a blockchain operates in a network that is completely decentralized. In other words, there is no single authority overlooking and controlling things, distributing the rights to access certain information, etc.
That is, not unless the network is private, but that’s a completely different situation.
The point is that a blockchain network functions with the help of nodes, and each node contains a copy of the whole ledger. This means that each node can actually take over from any of its counterparts if need be and that they are actually quite independent.
This is just one of the reasons why blockchain technology is so secure – a majority of nodes need to agree that something is acceptable.
Fast transfers
If you need to send money to someone who lives in another country, going through traditional banks can be quite time-consuming and sometimes even expensive. Cryptocurrencies and blockchain networks don’t have that problem.
It is precise because everyone has access to the ledger and because of the fact that a transaction needs to be verified by the nodes that the transactions and settlements can be quick, smooth, and fairly cheap. Simply, once everything is in the ledger, there’s no way for problems to occur and the transaction will go through.
And if you want to transfer funds from blockchain to blockchain, you can do so very easily. All you have to do is click here and initiate the process.
The ledgers
We’ve mentioned these ledgers a lot thus far, but it’s only fair to dedicate a part of this text to them alone because they are so vital in the functioning of the whole system.
The fact that everything is recorded here and the way in which it’s recorded (nodes verifying everything) makes it impossible to make changes that would hurt someone, ask for favors, or anything of the sort.
And because most of the nodes have to agree on something in order for it to be verified, you can be absolutely sure that what you see in a ledger is 100% true and fair.
Don’t worry, though, the nodes work exceptionally quickly, so you’ll never have to wait long. In fact, as mentioned, the speed at which a blockchain gets things done is another of this technology’s great advantages.
