Blockchains and cryptocurrencies have a very deep relationship since last ten years(2008-today) just like Angelina Jolie and Brad Pitt. The only difference between these two couples is that Angelina and Brad can exist without each other and these two tech things cannot. To understand what makes this couple different we need to understand what exactly blockchain is and how it makes its bond with cryptocurrency unbreakable.
What is Blockchain?
Blockchain, as the name suggests, is a chain of blocks (simple English but with a deeper meaning just to make Shakespeare proud).
Blockchains were basically made to make sure that the data of a simple transaction of an organization is kept preserved with progress in time. In simple words, to maintain the accountability and ease of access of any data an organization took a new data and added it to its database to make a chain of such data entities called ‘blocks’. These blocks are inter-dependent in nature thus making them to always be in the vicinity of each other.
Relation with cryptocurrency:
Now comes the interesting part. When a transaction is made for an exchange of a cryptic entity like Bitcoin with any specific goods or contracts, a transaction is undergone.
The transaction data like following is processed;
- who requested the process
- what process was requested
- what contracts are being made
- who are vending and client parties
- how much crypto entities are undergoing exchange
And every other minor detail is wrapped up in a single entity called block. This block is attached to the previously existing blockchain of other transactions.
In this way, through transactions, the blockchains and cryptocurrencies are related. Transactions are like matrimonial certificates for these two. Once a Transaction is processed, a blockchain has to get altered for the sake of a crypto exchange.
Why did Cryptocurrency choose Blockchains to be the life, partner?
Well, the answer is clear. Blockchains are so cool..!!
Meh!! How can anything related to geeky computer stuff be cool?? It’s Unpossible!!
Dude…firstly it’s not UN-Possible…It is IM-Possible…
And second, You shouldn’t judge someone’s love, it is already blind. Come On.
Spare That Poor Cryptocurrency!!
Anyway, cryptocurrency is not poor anymore. The crypto market has grown 3600% in last ten years and it is touching the sky. The investors are growing and to keep the record of data of every single investor and the transactions they make, we need blockchains.
That’s how cryptocurrency and blockchains are unbreakable and are obliged to stay together.
Like every girl likes a perfect guy, cryptocurrencies are into blockchains because of following reasons;
- Blockchains are transparent: they are public invisibility mode and are accessible to the concerned party easily.
- Blockchains are distributed: They are not centralized thus making it difficult for hackers to corrupt than in one go.
- Every Node is an administrator: thus making the user easy to make a transaction from any part of the client or vendor end.
- Each user has independent aspect prospect liability and participates in independent confirmation of a transaction.
Now, who would not like that?
There are some exceptions to this cool technology too. As this is a chain, in case of failure of a single entity from the chain, the whole chain is disturbed and the further transactions are affected. But to overcome that, the cryptocurrency organizations have implemented a simple technique. They make smaller chains dedicated to specific domains. This makes the failure of a block cause less effect on other blocks and transactions. Also, efforts are being made to completely rule out the chain failure in case of a block failure. And that is estimated to be achieved by this year.
And the best of all *Drum Rolls*, The blocks in Blockchains are cryptographically secured, making them super safe. Isn’t that awesome! No need to worry about cyber Bullies!!
That’s all we as the users need to know about the relationship between cryptocurrency and blockchain. They’re a cute couple, aren’t they?
Article By Vishwajeet Ranade