How does the blockchain technology verify transactions in cryptocurrencies?

3 answers

• Dec 17, 2021 · 3 years ago
  Sure! When a transaction is made in a cryptocurrency, it is broadcasted to the network of computers known as nodes. These nodes validate the transaction by checking if the sender has sufficient funds and if the transaction follows the rules of the specific cryptocurrency. Once the transaction is validated, it is bundled with other transactions into a block. The block is then added to the blockchain, which is a decentralized and distributed ledger. The blockchain ensures the security and accuracy of transactions by using cryptographic algorithms to create a unique digital signature for each block. This signature is linked to the previous block's signature, creating a chain of blocks. Any attempt to tamper with a block would require changing the signature of that block and all subsequent blocks, making it practically impossible to alter past transactions without the consensus of the majority of nodes in the network.
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• Dec 17, 2021 · 3 years ago
  The blockchain technology verifies transactions in cryptocurrencies through a process called consensus. Consensus is achieved when the majority of nodes in the network agree on the validity of a transaction. This agreement is reached through various consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS). In PoW, miners compete to solve complex mathematical puzzles, and the first miner to solve the puzzle gets to add the next block to the blockchain. In PoS, validators are chosen based on the number of coins they hold, and they are responsible for validating transactions and adding blocks to the blockchain. Both mechanisms ensure that transactions are verified by a decentralized network, making it difficult for any single entity to manipulate the system.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we use a combination of PoW and PoS to verify transactions in cryptocurrencies. Our network of nodes consists of miners and validators who work together to ensure the security and accuracy of transactions. Miners solve complex mathematical puzzles to add blocks to the blockchain, while validators use their stake in the network to validate transactions. This hybrid approach allows us to benefit from the security of PoW and the efficiency of PoS, providing a robust and reliable platform for cryptocurrency transactions.
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