✅How Does Cryptocurrency Work?
🔵To understand how cryptocurrencies work, we need to explain three concepts.
🟡They are
🔴the blockchain,
🔴cryptocurrency mining, and
🔴 cryptocurrency wallets.
✅ Blockchain Technology
A blockchain is similar to a database but better. Databases store a large volume of data electronically on a computer or on servers made up of powerful computers. These servers are often centralized in a location and built for easy storage and retrieval of data.
The blockchain differs from a database in setup. Unlike a database, the blockchain is a decentralized public ledger. The computers powering the network are not all under one roof or operated by one single individual.
In addition, a blockchain collects multiple data together in groups, otherwise known as ‘blocks.’ These blocks have specific storage capacities. Once filled, the blocks are chained and added to the previously filled block to form a chain of data known as a “block-of-chain” or the “blockchain.”
In the case of Bitcoin, the blockchain stores every Bitcoin transaction initiated on the network.
#how_crypto_work_part1
@Looz_crypto ✅️
