If you’re into finance, or even if you have some basic knowledge of this term, you must’ve heard about Blockchain. It is one term that makes rounds in the financial sector for its modernized solution to the drawbacks of the traditional system of finance. Blockchain as the name suggests is a system of blocks of database where important information regarding transactions is stored.
Blockchain was found by Satoshi Nakamoto in 2008 as a public distributed ledger of records where verified information is stored. The data in these blocks are stored in chronological order and protected cryptographically. It is an alternative to traditional finance and that is why it is gaining huge popularity in the market.
In this blog, we will walk you through the basics of blockchain and its working!
Decentralized, transparent, and immutable blockchain
Blockchain in simpler terms is a group of databases where important information is stored in a block. It is decentralized because the information is owned by nodes. There is no need for middlemen or third parties in the decentralized nature of blockchain and that is the reason why the cryptocurrency is considered as their byproduct them.
Blockchain is transparent because of its cryptographic protection that helps in safeguarding the data by keeping it end-to-end encrypted. The immutability also persists because once the data is entered; it cannot be changed and remains unaltered.
The working mechanism of blockchain
The growing rage of blockchain calls for a proper understanding of its working. Blockchain as you know is a chain of blocks over the internet where the user has authority over it. Therefore, the information is not governed by any third party.
The existing protected database is protected by an additional layer of security through cryptography. Cryptography here converts the plain text into ciphertext so that the information reaches only the end-user and not any fraud in between. Following are the steps that authenticate blockchain’s working-
1. Transactions here are made safe and authenticated as it is verified by digital signatures.
2. The computers over the internet verify these digital signatures to make sure that the user’s identity is legitimate.
3. The block is then added to the hash or hash value which means that it is positioned correctly. It also means that the information is unmodified.
4. After the completion of these steps, the block is added at the end of the blockchain.
Importance of time and efficiency in a Blockchain
Time and efficiency hold major importance in Blockchain because it allows operation in a decentralized manner, meaning the ledger of the database is distributed across the internet without a centralized authority governing it. Following are the crucial points conveying the importance of time and efficiency in Blockchain-
Transaction speed and time-
Transaction speed, as the name suggests, is the speed or rate at which data is passed from one account to another. The better the blockchain of a particular coin, the faster is its transaction speed. To talk about the transaction speed of crypto, the Caizcoin blockchain- Caizchain speed is more efficient at the rate of 0–3 seconds, higher most of the Cryptocurrencies in the market.
Transaction per second-
Transection per second is the number of transactions accomplished per second. Cryptocurrencies and altcoins like Bitcoin and Ethereum have executed 4.6 and 30.6 transactions per second. Caizcoin on the other hand has accomplished a milestone of 3000 transactions per second.
Blockchain lets the cryptocurrencies allow transactions and operations without the governance of a central authority. Caizcoin, therefore, provides global financial solutions with the help of Caizchain- an Islamic compliant blockchain.
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Caizcoin Official Website: https://caizcoin.com/