Blockchain networks are used to maintain growing lists of records. This is performed through a network of computers that are connected to the main blockchain network. Each computer stores a copy of the list of records. Any new entries are recorded in all copies of the record. In essence, the blockchain is a peer-to-peer network used to store and verify records.
Use of blockchain
In cryptocurrency networks, blockchain is actually primarily used. With the introduction of Bitcoin, this technology was popularized.
Blocks are the Bitcoin foundation that enables the cryptocurrency to remain safe as a store of value, and thus in-demand. In using technology to control their crypto-currency networks, other alternative cryptocurrencies, or altcoins, have preceded Bitcoin. Some, such as Ethereum, by adding functionality, have made improvements to their network.
However, Blockchain has other applications as well. It is also used for verifying logins or website certificates due to the built-in authentication function.
How it works
Computers are voluntarily connected to the network for the traditional Blockchain network and given a copy of the current records list. These documents are referred to as blocks. To the chain, new records or blocks are attached, hence the name. When new blocks are inserted, a specified protocol is used by the computers to verify and record the new block into the chain.
On top of the old blocks, new blocks will be inserted. This arrangement makes altering old blocks very difficult. In fact, without also changing the information in subsequent blocks that follow it in the chain, old blocks can not be changed.
In addition, all network computers must agree to alter this old block. This is what avoids knowledge that is false.
If a counterfeiter tries to build a fake cryptocurrency record, the network computers will disagree with the old block shift. Fake records are invalid and are not registered on the network.
Blockchain in cryptocurrency
Computer users who are part of the blockchain network are known as miners in cryptocurrencies. Since they engage in the authentication and documentation of cryptocurrency transactions, a small sum of the cryptocurrency in question is paid. The act of mining, therefore, includes supplying the network with your computational power in return for some cryptocurrency.
Different cryptocurrencies have various protocols of authentication and recording. The computing power and hardware needed for each block network will vary due to this. In addition, the confirmation speeds can also vary for transactions under various cryptocurrencies.
Per confirmation, Bitcoin confirmations can take anywhere from 10 minutes to an hour or more. Ethereum confirmations, by comparison, are normally much faster. There is generally a tradeoff between safety and pace, as well as mining fees and speed.