Unquestionably, my love for LeoFinance is the reason my enthusiasm and engagement to search for knowledge and information about LeoFinance are maintained. I'm also driven by the dedicated people of this active community @leofinance who are always eager to share and recieve knowledge and information associated with Finance. The creative application of blockchain technology in the financial sector and the possibility of receiving bitcoin rewards for knowledge and insight sharing is such a game changer for users.
LeoFinance is an interesting and dynamic environment to be a part of due to the constant evolution and improvement of its features and products. Today, I will share some facts we need to know about Blockchain.
Introduction
LeoFinance is a blockchain-based platform that uses blockchain technology to offer services in the financial and investing sectors. Its foundation is based on Hive blockchain, a decentralized and open blockchain network. With the help of the decentralised and distributed digital ledger technology known as blockchain, several users can safely and openly manage a single shared database. Here are some simple facts about Blockchain.
Definition
A blockchain is made up of a series of blocks, each of which contains a list of transactions. These transactions are compiled and added to the blockchain in a sequential, linear order.
Decentralisation
Blockchain is said to be DECENTRALISED which means that there is no central authority or middleman directing how blockchain works. The blockchain network is rather maintained and validated by numerous users, often known as NODES.
Security
The use of cryptographic methods allows blockchain to be secure. HASH is a special identification for each one derived from the data in each block. These hashes are used to join the blocks into a chain that cannot be altered. As a result, altering the data contained in the blockchain is very difficult for anyone.
Transparency
Blockchain offers transparency because everyone on the network has access to the whole transaction history. It also makes it possible to verify transactions without depending on a central authority, which fosters trust among participants.
Longevity
The trustworthiness of the data stored on the blockchain is guaranteed by its longevity. It is nearly impossible to change or remove information from a block once it has been added to the blockchain.
Consensus mechanism
Consensus mechanisms are blockchain networks used to determine the credibility of transactions and the order in which they are added on the blockchain. Some well-known consensus are, Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
Smart Contracts
Smart contracts are self-executing agreements with predetermined rules recorded into the blockchain. These agreements provide confidence and automation by eliminating the need for middlemen and automatically executing when certain conditions are satisfied.
Uses
In addition to cryptocurrencies like Bitcoin, blockchain technology has many other uses as well. Voting systems, identity verification, healthcare, finance, supply chain management, decentralised applications (DApps), and more can all use it.
Challenges
Blockchain technology has its advantages. Scalability and drawbacks. Energy use, regulatory concerns, interoperability across various blockchain networks, and privacy are among the major issues that must be resolved.
Types of blockchain
Public, private, and consortium/permissioned blockchains are the main varieties. When compared to private blockchains, public blockchains like Bitcoin and Ethereum are accessible to everyone, that is why private blockchain comes in a close second. Several organisations manage consortium/permitted blockchains.
Enjoy the Read Friends.
