Whow blockchain works
Blockchain gives us the technology to move information securely, and gives us almost complete confidence in the authenticity of any piece of information you want to protect. So far, only 1% of the world`s population uses blockchain.
Blockchain is a database with transactions, consisting of a sequentially built chain of digital blocks, each of which stores information about the previous and next blocks. This is a kind of digital notebook, in which the entries are unchanged due to the hashing mechanism - a unique set of alphabetic and numeric characters, where a change in one character entails a change in other blocks.
In the cryptocurrency sphere, the purchased or earned cryptocurrency must be stored somewhere. A blockchain wallet with wide functionality is suitable. With the help of a wallet, it is easy to save coins and get detailed information about blocks or completed transactions. The repository has earned a positive reputation for being reliable and easy to register - you can use bitcoin-fortress.site or any similar website.
Transaction in the blockchain network
The key advantage of blockchain technology is protection against intrusion by third parties. The ledger records the history of transactions between network nodes and forms blocks with information. There are no intermediaries, and all transactions are carried out using a special consensus protocol that ensures the coordination of information in the registry.
In the process of verifying a transaction, a consensus mechanism is used to eliminate the possibility of fraud. The Bitcoin network uses the SHA-256 protocol. With any, even a slight change in the chain, the hash changes. The use of EDS guarantees that the transaction is carried out by the owner, and not by a fraudster. Each network member has equal rights, and the connection is carried out using the same protocols. Users can be government organizations, ordinary citizens, companies, or other members of the community.
Today, a number of projects created on the blockchain are working, and their number is increasing every day. This is due to the advantages of technology and the opening of wide opportunities for users. Each person can invest in a start-up project by spending the minimum amount, and in the future, earning on the growth of the price of the token. Many blockchain projects are just developing, but have already earned popularity and are approaching the current leaders.
As of November 30, 2018, Ethereum ranks third in terms of capitalization and price. For example, the Bitcoin exchange rate on the specified date is $4,000, and Ether is $114. In terms of capitalization, Bitcoin is at $70 billion, while Ethereum is lagging behind at $11 billion.
Despite the lag, a number of experts are confident in the temporality of the phenomenon. The main advantage of Ethereum on blockchain technology is the presence of smart contracts - elements containing a specific execution algorithm. The project was launched on July 30, 2015, works on the Ethash algorithm and the PoW consensus mechanism, which is planned to be replaced by PoS in the next (2019) year.