What is a Blockchain - Explained by Heybitcoin.io


Posted May 7, 2019 by heybitcoin

Blockchain is digital, decentralized ledger (database) which stores transactions involving cryptocurrencies. It utilizes the distributed ledger technology (DLT) for securely storing the information of crypto transactions in an immutable record.

 
As you may already know, Heybitcoin.io is a modern investment management platform which uses blockchain technology along with artificial intelligence for enabling investors to effectively create and manage their portfolios with the help of right, verified traders.

The primary reason why Heybitcoin.io uses blockchain is because of its secure and transparent system for storing and transacting digital data. It enables the platform to facilitate a truly transparent and middleman-free transaction medium between its components - investors and traders.

In this article, we will try to understand what blockchain is and how it works.

What is Blockchain?

Blockchain is digital, decentralized ledger (database) which stores transactions involving cryptocurrencies. It utilizes the distributed ledger technology (DLT) for securely storing the information of crypto transactions in an immutable record.

Wondering why or where this technology can be used?

The primary use of blockchain is as a platform/network for cross-border digital transactions involving data or assets. As of today, when we have to transfer money from one account to another, we perform it via a third-party such as bank who verifies the transaction and then processes it.

But the problem with banks, or any other centralized entity, is that all the transactions are stored in a centralized ledger or with a central authority. This makes these entries easy to manipulate or temper.

Blockchain is a first-of-its-kind decentralized ledger which is not controlled or managed by any single entity. Moreover, the ledger copy is distributed among thousands of nodes in the network, which ensures that the same record is maintained with multiple computers/users (called nodes), making it nearly impossible to temper any transaction without everyone knowing it.

All the transactions, history, updates, access records, etc. are recorded in the blockchain, so, basically, nothing is hidden, as blockchain itself is a public network.

How Blockchain works

Blockchain works through Blocks, which are collections of transactions/data. Each block has a fixed size or number of transactions it can contain.

Whenever a new transaction or data comes through a blockchain network, it is automatically verified by the network (or nodes running the network). A verified transaction is then encrypted and added to a block. Once a block is complete, it is linked with other blocks in the blockchain.

Some of the best features of blockchain are:

>Immutability: Anyone can access blockchain transactions but cannot edit them.
>Peer-to-peer: All transactions are performed directly between the involved parties. There are no
intermediaries on a blockchain. So, high security and low cost.
>Distributed: Blockchain ledger is distributed, making it impossible to temper.
>Cryptography: Each blockchain transaction/data is protected with cryptography.
>Consensus: A blockchain is run by its users through a consensus mechanism.

Heybitcoin.io uses blockchain technology for securely storing and recording the data of investors and traders as well as for establishing a secure, transparent connection between the parties.
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Contact Email [email protected]
Issued By Hey Bitcoin
Business Address Tallinn, Estonia
Country Estonia
Categories Blockchain
Tags Bitcoin , crypto , Portfolio , ICO , blockchain
Last Updated May 7, 2019
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