Whether you are a fan of crypto or not, there is no way to avoid hearing about crypto, crypto networks, and blockchain technology. Although Bitcoin was only launched in 2009, blockchain technology has already greatly changed the way many industries operate, inspired new computing methods, and altered how we all think about money, currency and investment.
There are a number of different aspects to crypto technology, which is why it is such a complicated, complex, and often confusing thing to learn about. It is difficult to understand one single element of crypto without having first gained an understanding of all its aspects due to the interconnectedness of the technology.
This article will explain what crypto networks are and also provide some essential background info on the rest of crypto.
What Is The Blockchain?
A blockchain is essentially a distributed, decentralized, and immutable ledger, which makes the recording of transactions and managing of assets in a corporate network more accessible. One of the main attractions of blockchains is that they provide an incredible amount of transparency and information.
These public ledgers allow transactions to be recorded and verified, which in turn helps to reduce risks and costs for the involved parties. What other currency allows individuals to watch in real time as transactions are made?
What Can Crypto Be Used For?
If you have never used or bought crypto before, you may be wondering what crypto can be used for and why having such a ledger is even useful in the first place. There are many different cryptocurrencies available – and more being launched nearly every day – but the main cryptos, such as Bitcoin, Ethereum, and Ripple, have more uses than many of the smaller, newer cryptos.
Many people buy crypto purely as an investment instrument, and this can be risky with some of the more volatile cryptos because the prices fluctuate rapidly. Those who are investing can use listings such as the OKX cryptocurrency prices to track the fluctuations in price in real time.
However, many people choose to use crypto just like they would use any other currency and use crypto wherever they can. Some of the more crypto-friendly places are online, including online casinos, e-commerce, and tech applications.
What Are Blockchain Networks?
A blockchain network is a piece of technical infrastructure that provides ledger and small contract services to applications. These services are also known as chain code. Smart contracts are typically used to originate transactions; these transactions are then sent to every peer node which exists in a particular blockchain network.
There are many different types of transactions that can be tracked using blockchain networks, including orders, payments, production, and accounts, among other things. One of the appeals of blockchain networks is their transparency, as all users have access to the same information regarding transaction amount, time and parties.
The appeal of this level of transparency is that it increases trust and confidence and reduces risk. For example, it is nearly impossible to lie about how much Bitcoin you have because that information is contained in the blockchain network. That being said, blockchain networks can be public, private, or permission.
The Types Of Blockchain Networks
As mentioned above, there are three primary types of blockchain networks – public, private, and permissioned. A public blockchain is something that anyone can view. You, me, the President of the United States, we can all see the same information.
Private blockchains, which are also called ‘managed blockchains’, are blockchains that can only be accessed with permission, and which are administered by a single authority. This authority determines who can be a node and may not grant every individual the same level of access to information.
Two examples of private blockchain networks include Ripple and Hyperledger. Private blockchains are typically used in business settings where a higher degree of privacy is required.
A similar type of blockchain is the consortium blockchain; these are blockchains that are administered by a consortium of organizations rather than by a single entity. These blockchains are much more decentralized than fully private blockchains.
The final type of network blockchain is the permissioned blockchain network. These are typically small networks that are created by companies that require a private blockchain for privacy and security.
These platforms create a decentralized platform that is fully encrypted for maximum security. The permissioned nature of the platform ensures that whoever uses the blockchain is pre-approved and limits the types of transactions which they are authorized to perform.
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