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- General introduction regarding what Blockchain is.
- How the blockchain is operated and how secure it is.
- Blockchain projects that are active currently in the market.
What is a Blockchain ?
Basically, the blockchain is a scattered database that is spread between the data points of a large network of computers. Blockchain is itself a database, so the information is stored inside a blockchain in electronic form. Blockchain plays a crucial part in the structure of cryptocurrencies, for example, Ethereum. The blockchain allows users to maintain safe and distributed transaction records. The revolutionary concept of blockchain is that it provides a guarantee to the individuals regarding safety as well as precision of data records and creates faith among the users, which eliminates any kind of requirements of a third party.
Generally, the database is structured in the form of tables, which is not a case with the blockchain. Blockchain stores the data in blocks, which are then interconnected with each other. This kind of formation naturally creates a data timeline which cannot be reversed, when it is applied in a deconcentrated format. When the information is fed into a block, the block becomes firm, and finally becomes a fragment of the timeline.
Mechanism of Blockchain
In order to understand the mechanism of a blockchain, we need to go through the steps.
- Step 1 (Requesting Transaction): A transaction is requested by an individual. Anything can be involved in the transaction requested by the individual, which can be crypto assets, contracts, data.
- Step 2 (Broadcasting transaction): A broadcast regarding the requested transaction is done to a peer to peer network through the help of nodes or data points.
- Step 3 (Validating the Transaction): Status of the user, and transaction is then validated by the web of data points or nodes.
- Step 4 (Addition to the blockchain): As soon as the transaction is finished, another block is attached to the blockchain, in a similar way, that makes that block firm and which cannot be altered.
Active Blockchain projects in the market
There are different blockchain projects that are active in the market, a couple of such projects are explained below.
- Ethereum Swarm: Ethereum Swarm first emerged at the Ethereum Foundation. It is a type of project that expands Ethereum into the global computer, as the OS of web3, which is the group of javascript libraries, that enables individuals to do interactions with the Ethereum data points or nodes. If the processor is represented by the smart contracts of Ethereum, offering strong content creators, dynamic infrastructure, texting and hard drives are taken care of by the Swarm.
- Yield App: Yield App is a platform where digital wealth is managed, which allows the individuals to make investments in Ethereum, Bitcoin etc., which can provide an annual percentage yield of around 20.5 %. Since the application was launched, it has brought in managed assets of around $350 Million, 60,000 clients, and has a partnership with the EPL club West Ham United.
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Conclusion
Blockchain consists of blocks that are filled with information, which are interconnected with each other. These blocks are separate and firm, so even if they are altered by hackers, they need to hack every block separately, which is why it is so secure. The mechanism of blockchain consists of 4 steps, which are Requesting transaction, Broadcasting transaction, Validating the transaction, and adding the block to the blockchain. There are different blockchain projects in the market that are beneficial for the users, like Yield App and Ethereum Swarm, as briefed above.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
