January 17, 2022
Cryptocurrencies, such as Bitcoin and Ethereum, are based on a technology called blockchain. At its most basic, a blockchain is a list of transactions that anyone can see and verify. Cryptocurrencies and the blockchain technology that powers them make it possible to transfer value online without the need for an intermediary, such as a bank or credit card company.
Almost all cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin are secured through blockchain networks. Which means they are constantly being scanned for enormous computing power.
The list of transactions contained in the blockchain is essential for most cryptocurrencies because it allows you to make secure payments between people you don’t know without having to go through a third-party verifier, such as a bank.
Due to the encryption of these networks, blockchain payments can be more secure than standard debit/credit card transactions. When making a Bitcoin payment, for example, you do not need to provide confidential information. This means there is virtually no risk of your financial information being compromised or your identity being stolen.
Blockchain technology is also exciting because it has many uses beyond cryptocurrencies. Blockchains are being used to explore medical research, improve the accuracy of health records, simplify supply chains and much more.
Advantages of Blockchains
They are global: it means that cryptocurrencies can be shipped to the other side of the world quickly and cheaply.
Increase privacy: Cryptocurrency payments do not require you to include your personal information, protecting you from piracy or identity theft.
They are open: since every transaction on cryptocurrency networks is published in the form of a blockchain, anyone can analyze it. This leaves no room for manipulating transactions, altering the money supply or adjusting rules mid-way through the deal. The software that forms the core of these coins is free and open source so anyone can analyze the code.
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