Blockchain is a shared, unchangeable digital ledger that is updated often and used by many computers in a network to make it easier to record transactions and track assets in a network.
How does a blockchain work?
Each transaction that occurs is recorded as a “block” of data. As an asset travels or ownership of an asset changes, each block is linked to the ones before and after it, producing a chronological “chain” of data. The blocks link securely together to prevent any blocks from being altered or a block from being introduced between two existing blocks, and the blocks certify the precise timing and order of transactions. Each additional block strengthens the verification of the previous block and hence the entire blockchain, making the blockchain immutable.
But how does it really work?
Blockchain networks are driven by systems of aligned incentives. A community of users, node owners, developers, and miners that all play roles in a mutually beneficial network ecosystem is necessary for a well-functioning public blockchain.
A blockchain is maintained by a distributed network of parties (“miners” or “validators,” depending on the kind of chain). By consensus, these parties create blocks together. In plain English, the parties decide how to handle a group of transactions, or more specifically, how to construct the next block. The majority-approved block is the one that is permanently added to the chain.
What are the benefits of blockchain technology?
Trust: Blockchain’s decentralized nature means that information is stored and synchronized across a number of computers and is tamper resistant, creating trust in the data. Consensus on data accuracy is required from all network members, and all validated transactions are immutable because they are recorded permanently. No one, not even a system administrator, can delete a transaction. #cryptocurrency #nftcommunity #ontokens
Source: @Coinbase
