The blockchain technology was invented in 2008 just to power the bitcoin. But now a days, this technology is being used on everything, from sexual consent to copyright protections!
We all see the uprising value of all cryptocurrencies and all these depends on this technology. So there is always a question in mind, what the hell is this blockchain? Well, it's not that complicated concept!
How the Blockchain actually works
Every time we create a transaction on any cryptocurrencies, like bitcoin or something, transaction information or simply the records are stored in blocks. Once a block is completed, it creates a chain, and that chain is called blockchain.
Because all the cryptocurrencies are decentralized (not ripple) and encrypted, the transactions are more like some math problems. Like solving a math, the transactions are made on blockchain. But earlier we saw if a block completes, a chains creates. And that is why making transactions are so difficult on a grownup blockchain! Cryptocurrency miners do the exact thing, just solve those equations to earn a reward by cryptocurrency.
How blockchain works on Steemit
All the steemit users have a password to log into their steemit account. Actually that password is like a private key to its address in the blockchain! By using this key we steemit users can withdraw the SBD to USD or any currency we want plus we can invest them to other cryptocurrencies. The password is important because it's not a password, it's our address to the steemit blockchain! So if we loose our password we will NEVER get to withdraw our currency from steemit. We also got some public key (every steemit users have some key in their (wallet-permissions)) which lets other people to send cryptocurrency to our accounts.
Almost every information on a blockchain is public.( but you can't just give someone your blockchain address via steemit password!!!) And the whole thing is decentralized, which means it doesn't really lean on a single PC or server to function. That's why when a transaction has been made, it is instantly visible to everyone!
hi there! i will post some more articles on steemit blockchain, like how this works, how our transactions are made and blah blah. So, follow and resteem!
thank you!!