Understanding the Basics: Blockchain and Cryptocurrencies

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Welcome to the fascinating world of cryptocurrencies! The whirlwind of terms and concepts might be intimidating. But take a deep breath; I am here to help simplify it for you.

The Foundation: What is a Blockchain?

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Blockchain is a distributed digital record-keeping system that registers transactions across multiple machines. Visualize it as a series of digital blocks, where every block contains a set of transaction details. When a block is at capacity with transactions, a new block forms and links the previous one, creating a chain.

Why is Blockchain Special?

• Decentralized: Traditional banking systems have a central authority overseeing transactions. In contrast, multiple computers run blockchains, ensuring no single entity controls them.
• Transparent: Any member on the network can view any transaction on the blockchain, ensuring accountability.
• Immutable: Once added, no one can alter a transaction on the blockchain, preserving the data’s integrity.

Venturing into Cryptocurrencies