Cryptocurrency technology is done through blockchain technology, which is a more secure way to handle transaction data. When you go through a transaction with blockchain, each purchase contains a hash, which is a unique combination of various letters and numbers. Then, when another person makes a transaction, the new purchase includes both the previous transaction’s hash, as well as a new hash. As a result, purchases are more secure as each new transaction is dependent on the previous one; each individual hash can’t easily be tampered with or hacked without modifying a lot of the hashes. All of these transactions are subsequently verified by nodes, which are computers all around the world that communicate with one another using the peer-to-peer protocol. Once the majority of these nodes approve the transaction to verify its validity, the transaction gets entered into the block, which is simply a spreadsheet of this transaction data. All of the blocks form the blockchain system, which is updated every ten minutes to ensure that it is accurate and up-to-date with the recent transactions that the blockchain has processed.
Blockchain technology has a lot of potential applications in society, especially in healthcare, insurance, IoT (internet of things), and many more. The main premise of this technology is better security and privacy, which is currently lacking in a lot of fields as companies continue to collect obsessive amounts of user data and back it up to the cloud. With each new data breach, the issue of security becomes ever more prevalent, and blockchain technology has the potential to solve these issues for the benefit of society.
Source:
