Transactions on the Blockchain
A decentralized and secure way to transfer digital assets.
Imagine a group of strangers who don’t know each other but share a common goal:
avoiding centralized banking systems. They seek a more secure and cost-effective way to handle transactions—this leads to the birth of blockchain technology.
Key Points (Bullet List):
Blockchain eliminates high banking fees.
Transactions are decentralized and secure.
Each participant has a unique ID and a digital balance in cryptocurrency.
Transactions, Hash Function & Hash Value
A hash function plays a crucial role in securing transactions. It takes transaction data and converts it into a unique string of characters. If even a single character is changed, the hash value completely changes, ensuring data integrity.
Provides security and immutability.
Each transaction has a unique digital signature.
Prevents unauthorized modifications.
Understanding a Bitcoin Transaction
Jimmy wants to send 2 Bitcoin to Meghan.
He broadcasts his request to the network.
Miners validate his transaction and check his balance.
Once verified, the transaction is added to the blockchain.
Meghan receives 2 Bitcoin securely and transparently.
Why This Matters?
Ensures trustless transactions.
Prevents fraud and double spending.