Updated on February 25, 2020
Block chain is about the most mentioned statement in the world of cryptocurrency today. In fact, block chain is the central part of cryptocurrency since it is the virtual ledger in which all bitcoin transactions are recorded. When you send or receive bitcoin to or from anyone, the record of that transaction goes into the block chain and the record is preserved for long. In fact, it can remain forever. Only those who have private or public keys can access the items of transaction recorded in the block chain, however. The blockchain is decentralized and this means it is not under the control of a single entity. This is one of the factors that make bloc chain highly secure.
Benefits of the block chain
The main purpose of the block chain is to record all cryptocurrency transactions for public access. Block chain is designed in such a way to promote transparency and also reduce the risk of fraud in the network. As a result, it is impossible for anyone to be locked out of the blockchain. The block chain technology has so many applications because of its incomparable transparency and fraud-free nature. In fact, it has been found to be useful in virtually every industry out there today.
How does it work?
Block chain consists of a chain of blocks linked together to enable them communicate with one another. As mentioned earlier, the block chain helps to store details of bitcoin transactions and keep the transactions secure for everyone that has the private or public keys to be able to access them. Each of the blocks in the chains of blocks includes the cryptographic hash of the previous block. The cryptographic hash is also called a mathematical algorithm. Any cryptocurrency transaction that gets recorded in any of the blocks will need an endorsement from many of the nodes present in the block chain network.