How Blockchain Works?

How Blockchain Works?

Blockchain consists of multiple blocks linked together. When a new data is to be stored in a block, then it is added to the blockchain. Following steps are taken when a new block is added to a blockchain.

A transaction takes place.

The transaction is verified.

The transaction gets stored in a block.

A hash is assigned to the block, which is a unique code to distinguish one block from another.

The block is added to the blockchain after it is hashing. The blockchain is then publicly available. A blockchain does not have any transaction cost. It is a simple way of passing information from A to B in a fully automated and safe manner.

How Blockchain Works?

A “blockchain,” in the simplest term, is a time-stamped series of immutable records of data managed by a cluster or group of computers not owned by any single entity. Every block of data is protected and bound to one another by means of cryptographic principles. The blockchain is definitely one clever invention by a person known as “Satoshi Nakamoto.”

This “Satoshi Nakamoto” is not a real person but only a pseudonym of a person or group of persons who developed bitcoin, authored the bitcoin white paper, and created and deployed the original reference implementation of bitcoin. Bitcoin is the first and original cryptocurrency which others followed. The following are the ten (10) most important cryptocurrencies aside from bitcoin:

1. Ethereum (ETH) – had a market cap of $15.6 billion and a per-token value of $142.54 as of January 8, 2020
2. Ripple (XRP) – had a market cap of $9.2 billion and a per-token value of $0.21 as of January 8, 2020
3. Litecoin (LTC) – had a market cap of $3.0 billion and a per-token value of $46.92 as of January 8, 2020
4. Tether (USDT) – had a total market cap of $4.6 billion and a per-token value of $1.00 as of January 8, 2020
5. Bitcoin Cash (BCH) – had a market cap of $4.4 billion and a value per token of $240.80 as of January 8, 2020
6. Libra (LIBRA) – this cryptocurrency has not yet been launched and rumors say that Facebook, Inc. is developing this cryptocurrency
7. Monero (XMR) – had a market cap of $994.0 million and a per-token value of $57.16 as of January 8, 2020
8. EOS (EOS) – had a market cap of $2.7 billion and a per-token value of $2.85 as of January 8, 2020
9. Bitcoin SV (BSV) – had a market cap of $2.1 billion and a per-token value of $114.43 as of January 8, 2020
10. Binance Coin (BNB) – had a market cap of $2.3 billion and a per-token value of $14.71 as of January 8, 2020