How Blockchain Works: The Technology Behind Cryptocurrency Explained
1 min read
Summary
This article provides an overview of the revolutionary technology behind cryptocurrency, namely blockchain, and its various components.
Blockchain is a decentralised digital ledger that securely records transactions, eliminating the need for intermediaries.
Core elements of blockchain technology include blocks, which contain lists of transactions, and cryptography, which ensures data integrity.
Mining is the process of verifying and recording transactions on the blockchain, rewarding participants for their efforts.
Smart contracts automate agreements and boost transaction efficiency, while advanced security measures prevent fraud.
The article also explores challenges and emerging trends in the blockchain space, such as decentralised finance (DeFi) and interoperability between different blockchains.
The author concludes by advocating for the adoption of blockchain technology due to its potential to transform industries and offer seamless, secure, and transparent transactions.