Blockchain in Depths

After clarifying somethings about “What is a Blockchain”, let’s go further to unravel this mysterious thing called Blockchain.

Let’s start from the point that a Blockchain is kind of a Ledge or Financial spreadsheet, that is recorded over and over across a big chain of computers that make sure that each data that passes through them remains the same, and its validate with a specific Timestamping.

The Timestamping variates between several types of Hashing algorithms that go to the eldest ones, like the proof-of-work scheme, to the newest, like CAPTCHA. But there is a counterpart for the proof-of-work scheme: the proof-of-stake; the idea is the same, to secure the transaction, but the way of processing altogether is totally different from proof-of-work.

The proof-of-work works with a complicated and hard to decrypt Hash algorithms to validate the transactions, while proof-of-stake runs a simpler encryption, and there is no standard form of it.

Some cryptocurrencies utilize both forms of encryption on your system for extra security.

With all these encryption types, the Blockchains solved the double-spending problem (double-spending stands for duplication or falsification of digital cash) without the help of any governmental or Federal reserve system. Turning out to be really secure to invest.