Blockchain technology and its relationship to fraud

3 31
Avatar for Farah
Written by
3 years ago

Many beginners still wonder about how the cryptocurrency works, and what is the role of blockchain technology in the crypto world, so today we will talk about some important matters in this emerging industry.

This article aims to make beginners understand the concept of blockchain and why the answer is usually when the technology behind BTC is questioned.

What is blockchain technology?

A blockchain is essentially a globally distributed ledger that allows users to record valid Bitcoin transactions on blocks of data linked together, creating a chain. Data blocks do not need centralized external entities, such as banks, to be validated.

Blockchain technology allows other users within the network to see it for every recorded transaction. This is what defines the Bitcoin blockchain platform. It is a public database. Can anyone on the network view and review transactions on the blockchain platform? Of course, not everyone has access to all transaction details. Personal information remains private.

How the blockchain works

Blockchain is basically digital information, which includes the "block" saved in the network's database and is the "chain". Each block contains transaction details. Such as the owner ID, which is anonymous in the form of usernames. The amount of cryptocurrency used or purchased, and the date and time of the transaction. This transaction is then authenticated through a digital signature.

The data blocks are duplicated and recorded on different nodes or computers. They are called "miners". These nodes verify the validity of each transaction before adding it to the block. This makes the blockchain technology a distributed ledger containing the entire Bitcoin transaction history. All nodes on the network receive updated notifications whenever a new block is added or an existing block is changed.

The flow of data across the network is governed by a permanent set of rules, which make up the original Bitcoin protocol. Therefore, if some information on the block does not adhere to the protocol, the blocking will be canceled and rejected. Once a new block is successfully added to the chain, the information can be displayed publicly.

One transaction does not make one block. It can hold thousands of transactions depending on its size. Bitcoin's blockchain platform is designed in such a way that it can store large amounts of various forms of data. Such as payment transactions, to maintain business applications.

When the block is full, it connects to the other completed block chain in a time sequence. The inventory of verified transactions for the previous block is also recorded in the new block. In this way, the Bitcoin database is static and indelible.

Is blockchain fraud resistant?

Having hundreds of thousands, if not millions, of duplicates of Blockchain makes it extremely difficult for any user to manipulate the data for fraudulent purposes.

So, when asked what is an emerging blockchain technology ?, one can summarize it and generally say that it is a system that allows data validation and storage in a way that makes it more resistant to hacking and tampering.

8
$ 0.48
$ 0.48 from @TheRandomRewarder
Avatar for Farah
Written by
3 years ago

Comments

Blockchain technology is a revolution in the business world.

$ 0.00
3 years ago

Added to my knowledge.

$ 0.00
3 years ago

that's great.

$ 0.00
3 years ago