How do Blockchain and Cryptocurrency Work?

A Shared Ledger:

Just like a bankbook, a ledger records the details of a transaction. If a dispute occurs, all peer-to-peer computers can be used to check the information in question.

Cryptocurrency and Wallets:

Cryptocurrency is a form of currency that doesn't need to be issued by governments, banks, or central money issuers. It's a brand-new medium of exchange that enables people to safely buy, sell, or trade their assets.

Public Keys and Private Keys

Public Key:

A public key is similar to a company's web address. Firstly, public keys are public, meaning anyone in a network can look it up and widely share it.

Private Key:

In the event where the building is not open to the public, then only those with a spare key can enter. In other words, encrypted messages can only be decrypted by users holding the public key's corresponding private key.

Mining and Nodes

"Mining" is more of a metaphor to describe the process of people who work within a massive, decentralized network. They earn their rewards in the form of cryptocurrency generated by the system.

Think of a node as an independent computer. Each node is interconnected with one another to form a web. Data is stored in blocks among these nodes.

#KarmaKsana

#blockchain #crypto #cryptocurrency