Blockchain

Unit 1 • Chapter 3

Cryptocurrency and Blockchain

Summary

Ever wonder if there's an easier way to complete transactions without online wallets, banks, and third-party applications? Blockchain makes this possible by utilizing cryptocurrencies, digital or virtual currencies running on blockchain technology. Blockchain ensures security through complex encryption algorithms and decentralization, making them immune to counterfeiting. In a market with thousands of cryptocurrencies, Bitcoin stands out. Transactions in blockchain are recorded in blocks in a ledger shared among all users, ensuring transparency and preventing fraudulent transactions. Each block references the previous one, creating an unalterable chain of records. This distributed ledger system eliminates the need for intermediaries like banks and ensures the validity of transactions through peer verification.

Concept Check