How the Blockchain provides core functionality in digital currency markets?

How the Blockchain provides core functionality in digital currency markets?

A blockchain or Blockchain is a growing list (a kind of a linked list) of several records, which typically called blocks.

Those blocks are connected in a chain using cryptography techniques to provide security to data to maintain its Integrity against any possible alteration or fraud attempt.

 

Photo of Block Chain

 

Typically, every block also contains a cryptographic hash value of the previous block as well as a time stamping, along with the actual transaction data. At the same time, it calculates it’s own value (for that particular piece of information or data/block). Generally, it makes a shape as a tree.

Blockchain formation

The main chain (black) consists of the most extended Block sequence from the (green) genesis block to the current node. Outside of the main chain reside orphan (purple) blocks..\

 

The underlying philosophy is that a blockchain or Blockchain provides a mechanism to resist modification/alteration of the data; hence it gives Integrity for that information/data.

 

Bitcoin Network Data

 

This is a transparent, distributed ledger that is useful for securely and verifiably and indefinitely tracking transactions between two individuals, utilizing distributed processing through a server node network, to provide a centralized/distributed ledger.

 

Blockchain Peer-to-Peer Network

 

A blockchain is usually powered on a peer-to-peer network, where computing nodes collectively adhering to a protocol for inter-node communication and provide security/integrity of the data by Current foundations verify. When registered, data can’t be changed in any given block, replaced, or altered retroactively without alteration of all subsequent blocks. This typically requires consensus of the network majority.

 

It means that it does not only compute the hash value of the current block of data, but it includes the calculated hash value of the previous block of data as well as this newly calculated value also being used in computing / calculating. The further/next block of data, which makes it more secure by coupling the computed values tightly interlined in a chain or rail. In contrast, this chain or track is not needed to be calculated and stored on a central server.

Instead, it is done in a distributed computing and storage environment. Although blockchain records are not unalterable, blockchains are usually considered as secure by design and provides a distributed computing system based on a Decentralized consensus. The Blockchain system was initially introduced to serve as the Distributed Public Transaction ledger of the cryptocurrency bitcoin, without the need of a trusted authority or central server. Blockchain is considered a type of transaction chain or payment rail.

What makes Blockchain ideal to be used in cryptocurrency markets?

The main features which Blockchain offers, especially for the cryptocurrency include but not limited to Decentralized Distributed Computing, Cost-effectiveness, Scalability, Robustness, Trustworthiness  (provides Integrity), Digital Public Ledger for all Transactions accessible through the network.

 

It can be seen very clearly that CryptoCurrency Market is quickly gaining market shares in recent days, especially in this crucial time of COVID-19 pandemic.

 

Bitcoin v/s USD

[Source: Vantage FX International, as of 19 April 2020]

 

Bitcoin Cash v/s USD

[Source: Vantage FX International, as of 19 April 2020]

 

Daily COVID-19 Deaths

[Source: https://ourworldindata.org/grapher/daily-deaths-covid-19, as of 19 April 2020]

 

 

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My Name is Shehzad Ahmed and I am a full-time developer with over 7+ years of experience. In that time, I’ve worked as a developer with many big and small firms and was teaching web design and development skills to many keen learners and by the time passes I’ve found a great passion and potential on myself as a teacher on this particular field and now I am a full-time teacher and working as a freelancer.

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