Blockchain: The Technology Behind Cryptocurrency

Introduction:

The technology behind cryptocurrency is blockchain that keeps transactions secure, immutable and transparent in a decentralized way so that no single person or group has control, rather all users collectively retain control.

 

Using cryptography, data is encrypted and then stored in form of blocks and linked together in such a way that each current block points to next block and previous block which means that a block recognizes the block behind and the block in front of it only.

 

Transactions recorded on blockchain cannot be reversed or altered because hash of one block is stored in the next block which means current block always validates the previous block. If data is changed or deleted somewhere, all the coming blocks will not be able to validate therefore nullifies the complete chain of blocks.

 

The blockchain technology is replacing banks and trusted intermediaries and brings financial and data management to decentralized mode. Using such characteristics of blockchain, cryptocurrencies have been developed so that people would become independent to manage their data and wealth.

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