How does a block become valid in cryptocurrency?

3 answers

• Nov 26, 2021 · 3 years ago
  Sure! When a new block is created in a cryptocurrency network, it needs to go through a validation process to become valid. First, the block is propagated across the network to all the nodes. Each node then verifies the transactions within the block to ensure they are valid and follow the rules of the cryptocurrency's protocol. This includes checking the digital signatures, confirming the transaction inputs and outputs, and validating the block's hash. Once the block passes these checks, it is considered valid and can be added to the blockchain. This validation process helps maintain the integrity and security of the cryptocurrency network.
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• Nov 26, 2021 · 3 years ago
  To understand how a block becomes valid in cryptocurrency, think of it like a puzzle. Miners in the network compete to solve this puzzle by finding a specific hash value that meets certain criteria. This process is called proof-of-work. When a miner successfully finds the correct hash value, they broadcast it to the network along with the transactions they included in the block. Other nodes in the network then verify the hash value and the transactions to ensure everything is valid. If the block passes this verification, it is considered valid and added to the blockchain. This ensures that only legitimate blocks are added to the cryptocurrency's ledger.
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• Nov 26, 2021 · 3 years ago
  In the case of BYDFi, a decentralized exchange, the validation process for blocks is slightly different. Instead of relying on proof-of-work, BYDFi uses a consensus mechanism called proof-of-stake. Validators are chosen based on the number of tokens they hold and are responsible for validating transactions and creating new blocks. Validators stake their tokens as collateral, which they can lose if they act maliciously. This ensures that only honest validators are selected and that the blocks added to the BYDFi blockchain are valid. The use of proof-of-stake also makes the BYDFi network more energy-efficient compared to traditional proof-of-work cryptocurrencies.
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