What is a Blockchain?
Have you ever wondered, how cryptocurrencies are created and how they are used for transactions. There are many cryptos in the market, approx. 400 cryptos and all are made on some blockchain system. Like Bitcoin is mined on its native bitcoin blockchain, similarly Ethereum is mined on Erc-20 blockchain, Tron on Trc-20.
Let’s know about this simple Network on which whole crypto market relies.
A Blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.
The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT). Miners verify the transaction and use a consensus algorithm to agree on the state of the system. Miners usually get paid a fee for their work on blockchain.
Bitcoin’s blockchain is public, which means anyone who owns Bitcoin can view the transaction record. While it can be difficult to trace the identity behind an account, the record shows which accounts are transacting on the blockchain. Public blockchains also allow any user with the required computer power to participate in approving and recording transactions onto the blockchain as a node.
How does a transaction get into the blockchain?
A transaction is requested and miners authenticate it. A block represents that the transaction is created, and then it is sent to every node in the network. Nodes validate the transaction and they receives a reward as consensus algorithms, typically in cryptocurrency. The block is added to the existing blockchain. The update is distributed across the network. Hence the transaction is complete.
Authentication
The original blockchain was designed to operate without a central authority (i.e. with no bank or regulator controlling who transacts), but transactions still have to be authenticated.
This is done using cryptographic keys, a string of data (like a password) that identifies a user and gives access to their “account” or “wallet” of value on the system.
Authorisation
Once the transaction is agreed between the users, it needs to be approved, or authorised, before it is added to a block in the chain.
For a public blockchain, the decision to add a transaction to the chain is made by consensus. The people who own the computers in the network are incentivised to verify transactions through rewards. This process is known as ‘proof of work’.
WYZ is powered by its native blockchain network, just like other blockchains and can be mine through miners. It is built on its independent blockchain network called “WYchain”.
