Cryptocurrency Investing: It’s not as risky as you think

What is Cryptocurrency?

Cryptocurrency is a digital currency whose ownership and transactions data are recorded on an electronic ledger.

In fact,Guest Posting this electronic ledger is a cryptocurrency’s blockchain that updates together on over 10,000 computers around the world.

Further, the protocol defines the creation and crypto trading proof for the transactions of cryptocurrency

In other words, the protocol is a list of rules that define how the process will carry out to update the task into the ledger.

Moreover, the transactions are in the form of unique codes and secured by cryptography principles.

Cryptography allows the transactions such as creation, change of ownership, etc. to record in various databases through blockchains

But, the blockchains can be public or private.

If it is public, anyone can write the list of transactions and it doesn’t have any gatekeepers to approve or reject the parties

whereas,

If it is private, then the allowed gatekeepers have full authority to approve or reject parties to carry out any transactions.

For eg: Bitcoin and Etherum belong to the public blockchains.

The huge expansion of crypto has created an entirely new and global industry.
How does Blockchain technology works?

At first, the term “Blockchain” looks very hard to figure out, this is why most of us don’t attempt to know about it.

But, it’s easy to know about it as it is simply managed by software running on computers that communicate with each other forming a network.

The following tasks have been performed by the network:-

Connect with other members in the network
Download the blockchain from other participants
Store the blockchain
Search for the new transactions
Validate and store those transactions

These Blockchain stores data in batches called blocks.

Each block is like a page of a digital ledger or record book to form a stable linked line in a sequential way.

Each block consist of three elements:
1. DATA

A block’s data contains the details about the transaction including sender, receiver, number of coins, and so on.