Cryptocurrency came into existence almost ten years back, and people then approached it with skepticism which showcased the neophobic nature in them. But, in time, people started to accept this technology as an essential futuristic one. Cryptocurrency is a form of digital money that enables the user to make online transactions without a central authority to control the whole process of banking. The physical banking process and digital banking both have their share of advantages and disadvantages. Physical banking, with its centralized approach, benefits the bank with most of their procedures as it accords itself with the supreme power. As soon as cryptocurrency took over the market, people were impressed by the feature of decentralization, and it was this very feature that helped cryptocurrency to sustain the rapidly changing face of the economy.
What is Blockchain?
It is a distributed database that stores information concerning the transactions, and these data cannot be altered in any manner as numerous computers (nodes) would be connected to the database. The network is rendered robust by the inclusion of more nodes into it and with this increasing number of nodes, the blockchain becomes more immutable. Blockchain exhibits features of security and immutability along with low-cost transactions. Cryptocurrency feeds on these features of blockchain to make the best use of it.
When the transaction is done via blockchain, it has to be verified by the miners, and it is their job to store it into blocks by allotting it with proper coded locations. This mathematical code which creates a block for storage is called hash and once it is hashed it has to be added to the blockchain.
Investing in Blockchains
Investing in any financial deals require some prior deliberation put into it to ensure safe trading and high returns. Likewise, in the case of cryptocurrencies, the investment plans should be backed by a thorough knowledge of the protocol under which the…