Understanding blockchain and crypto currency for investing
A large number of people want to invest in blockchain but get intimidated by the jargons and the opaqueness of the whole operations. However, there are reliable market makers like Solana Blockchain where you can invest in the cryptocurrency market and also generate income quite easily. You will be able to perform low cost and high speed transactions that generate profits. What you have to understand is that a blockchain is like a digital ledger similar to any other ledger where sale and purchase are recorded. In simple terms, a blockchain records the debit and credit between different entities or people. However unlike traditional financial transactions where the money is sent or received through an intermediary like banks, block chains are completely decentralised. So there is no main ledger that is with one entity like how banks operate. Instead, the ledger or blockchain is spread through a network of computers which are connected to each other through a software called P2P or peer to peer. This software helps in synchronising the records. This way all the computers have the same records at any point of time.
Starting a new transaction
To understand how blockchain works, you will have to start a transaction. Once you start a new transaction, it gets encrypted into a block. This is an encrypted group of transactions. The block gets sent to all the computers connected to the network. The process of sending the block to all nodes or connected computers is called broadcast. Once a block is broadcasted, it gets verified by the computers and then accepted into the network. The block gets added to the end of the ledger and the information is updated in every computer. This is how the term blockchain got coined because the encrypted blocks together form a chain of transactions.
Reason for the growing popularity of blockchain
Crypto currency is becoming a household term and many people are using blockchains. The reason for this is the decentralised nature of the transactions, there is no one government regulated organisation acting as an intermediary. Instead the blocks are verified by nodes of computers in the network before they can become part of the blockchain. This way if anyone wants to hack the blocks they will have to hack all the computers connected to the network at the same time. A hacker who wants to bring the blockchain down will have to gain access to all the nodes and shut them down simultaneously which is almost impossible. The encryption also plays a key role. A reputable cryptocurrency will use a complex process of verification. The blocks will have to be verified through complex puzzles and programs that makes them more secure. There are also entities like Solana Blockchain which are completely safe and also has low transaction fees. You can also enjoy Proof of History or PoH for a high performance block chain that can reach up to 50k transactions every second for $10 per 1 million transations.