Thursday, January 20, 2022
Home Guides What is a Blockchain Social Network

What is a Blockchain Social Network

- Advertisement -

Before we go any further, you need to first understand the basics of blockchain technology. Think of a blockchain as a database. However, in this case, a blockchain is a distributed database that operates on various computers in a network.

Blockchain is the underline tech on which crypto coins operate. The technology helps keep crypto transactions safe and decentralized. Ideally, blockchain systems help create trust and security in crypto transactions without involving any third-party entities.

If you’re new to crypto, understanding what a blockchain is and how it operates is very important. This article will help you understand how a blockchain works. We will also share some of the key benefits of blockchain systems.

How a Blockchain Works

In databases, records are stored in tables. However, in a blockchain, data is grouped to form a block. The blocks are later joined to one another to form what is referred to as a blockchain. The blocks have different storage capacities, and once full, they are closed and added to the blockchain.

As mentioned before, a blockchain is a distributed database. Each transaction on a crypto network is always sent to various computers for verification. Once the transaction has been deemed valid, it is joined to other verified transactions to form a block. 

All verified transactions on a blockchain are encrypted before being big stored. The transactions saved on a blockchain are immutable and no one on the network can delete or change the contents. In addition, anyone on the network can view saved transactions. You can click this for more information on how a blockchain works.

Benefits of Blockchain Technology

When developers were brainstorming on how to create decentralized currencies, one issue that kept cropping up was how to keep the system secure. The developers didn’t want to have a central entity controlling how the crypto coins operated.

Blockchain technology was first implemented when Bitcoin was made public. Its success led to the creation of other crypto coins, NFTs, and DeFi (decentralized finance) systems. Decentralized systems were meant to be the watchdogs that ensured the validity of blockchain data.

All transactions on the blockchain network are transparent. As such, each computer in the network has a copy of all the transactions that have happened on the network. Crypto owners can track the history of their coins over time. 

The system can also keep track of stolen crypto coins. There have been instances where major crypto exchange platforms have been hacked and their crypto assets were stolen. The stolen crypto is always marked, and if the hackers try to make a transaction using the stolen coins, it will always be flagged down on the system.

Bottom Line 

Blockchain technology has led to the creation of more tech products. Some of its top benefits are security and transparency. Nowadays, developers are adding blockchain tech to develop tools that don’t require third-party verification.

Transactions occurring on the blockchain network are encrypted, thus making it difficult for anyone to tamper with it. Decentralized systems give users power over their data and assets. 

 

- Advertisement -
Mark Brennanhttps://thecryptobasic.com/
Mark is 27, holds a Master degree in Business Administration, and works as a content Creator at TheCryptoBasic mostly on Crypto Market Updates. Since 2014 he has been active in the crypto sector. Thanks to the Business College in which other than Business subjects, he was taught about the disruptive potential of Blockchain. His interests include Blockchain technology and Crypto Market innovations. He also founded a small startup in which he gives lectures on cryptocurrencies.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

The Central Bank Of Russia Proposes A Ban On Cryptocurrency Use And Mining

The Central Bank of Russia (CBR) issued a consultation paper on Thursday entitled 'Cryptocurrencies: Trends, Risks, and Regulation', whose primary focus is to influence...

Fox Business Journalist Says SEC legal Team Declared Ripple (XRP) Non-Security In 2018 So What Changed In 2 years?

Eleanor Terrett, a Fox Business journalist, recently questioned the ongoing lawsuit between the SEC and Ripple. window.coinzilla_display...

Michael Saylor Reaffirmed After BTC Drop From $69K to $40K That Neither He Nor His Company Will Sell A Single Satoshi

Michael Saylor, again affirmed that neither he nor his company is going to sell their bitcoin holdings. ...

After Sundaeswap, Another Decentralized Exchange Is Launching On Cardano

After Sundaeswap, another decentralized exchange (DEX) based on Cardano, Minswap has announced January 25, 2022, as its public beta launch date.

Shiba Inu Leading Developer Share His Thoughts On Microsoft-Activision Acquisition, Can Shib Get Something From This Deal?

Shiba Inu cryptocurrency holders woke up and smelled roses, and it's all thanks to Microsoft as the company prepares its new acquisition of Activision.

Shiba Inu Takes 3rd Spot Beating Ethereum In Top 10 Most Viewed Coins In Europe

Coin market cap (CMC) has just released its “Top 10 Most Viewed Crypto Coins” list for Europe. The list is released by CMC based...

Another Memecoin Trending On Twitter With 690T Supply

Twitter has become one of the main discussion points about cryptocurrencies. Recently, a cryptocurrency has been trending, looking like a bizarre project, the Shibnobi...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.