With the advancement of technological aspects, cryptocurrency investment is grabbing the attention of professional traders these days. Many millennials and even professionals are jumping into the pool.
So, what led to the rise of this cryptocurrency is the technology behind this. Yes, we are talking about blockchain technology. Blockchain is the underlying technology of cryptocurrency initially, it was associated with Bitcoin, and many people continue to use Bitcoin and Blockchain synonymously. This blog also highlights the details about blockchain technology and how it impacted bitcoin and made it a more sustainable currency for the future, so understand more about Blockchain.
Overview of Blockchain
We know that cryptocurrency operates on a peer-to-peer interaction or peer-to-peer system. When two parties are interacting, they will exchange or transact the money without relying on a 3rd party platform. Now, this whole process is supported by blockchain technology, and Blockchain eliminates having a 3rd party to govern or rule these transactions.
Due to the lack of 3rd party intervention or interaction, the entire process becomes seamless, and there is little or no interference. The entire process is decentralized, which means that nothing gets stored at the central server like conventional technology or the payment mode that we are using. It’s important to build a cryptocurrency portfolio to evaluate and keep track of the performance of every coin.
Key features of Blockchain- Everything To Note About
Blockchain’s unique features also got transferred to Bitcoin and other cryptocurrencies that operate on this technology. Let’s understand more about the key features of blockchain technology and how it is becoming a revolutionary technology for the future.
- Decentralized means that there is no governing authority or central regulatory server like we have in the conventional technology. It means that the system’s information or transaction gets distributed to the entire server. Some nodes control or validate these transactions since the entire information or transaction is distributed in the system rather than a reserve data central point. It is called a decentralized technology.
Bitcoin and other cryptocurrencies run on decentralized technology. Similar features get adapted in Ethereum or Bitcoin transactions, and the same is reciprocated in other cryptocurrencies.
- Lesser wait time- In addition to the decentralized feature, another unique feature of Blockchain is the lesser wait time or the validation time .in the conventional transaction method when money is transferred from one party to another, in that case, the 3rd party validates this transaction this becomes a time-consuming process. If the transaction is happening at the cross border, this increases the time and hence impacts productivity conversely when we take the same scenario in the blockchain technology or on the blockchain forum, you don’t have to wait for long for the validation or approval of the nodes.
Since there is no 3rd-party involved, the Bitcoin transactions take a lesser wait time in such cases. This makes the transaction via blockchain technology faster and less time-consuming. However, when it comes to scalability, then this is still under question because of the scalability of Blockchain. Bitcoin transactions are not as high as the conventional platforms we are using now.
- Enhanced security– Safety and security are two major concerns when digital transactions. Most digital platforms are vulnerable and prone to attack or data threats; hence, there is a need for a secured system, and Blockchain platforms offer this security.
It works on encryption via cryptography, which means that any transaction or information executed via a blockchain platform gets timestamped and entered into the ledger. This time stamping an entry into the ledger is done via cryptography, and it ensures that the information is secured and free from data threats also.
Every data that is entered into the ledger is attached to another. The best part is that there remains no chance of data theft, making blockchain technology a safe and secure platform for traders.
If you, too, are planning to invest in Bitcoin or cryptocurrency, this is the right time to do so/ since many companies are venturing into it. Many cryptocurrency exchange platforms offer you great discounts and deals, choosing the one that can be challenging.