01/02/2022
What exactly is a BLOCKCHAIN, anyway?
A BLOCKCHAIN is a digital ledger, or list, that records transaction data. Anyone who wishes can view or verify this ledger as it is open-source. This allows for an unprecedented level of transparency within the Bitcoin financial ecosystem. The blockchain underlying Bitcoin acts as a untamperable timeline of every transaction, eliminating the need for a verifying intermediary such as a bank.
Welcome to a truly open financial system where you can be your own bank.
How does BLOCKCHAIN technology work?
The blockchain is managed by a distributed network of computers or nodes that each hold an up-to-date copy of the ledger. When a transaction is made, a record of that transaction is added to the ledger. Transactions are batched into blocks and added to the ‘block-chain’ through a consensus mechanism process.
What are the benefits of this technology?
One of the unique features of the blockchain is its immutability, meaning data added to the blockchain cannot be modified. This cuts out the potential for fraud and results in a secure, reliable, ongoing audit of information. From an accessibility perspective, blockchain networks operate globally, 24/7. While banks do not operate on holidays or weekends, Bitcoin does. Transactions are promptly sent directly from the sender to the receiver peer-to-peer.
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