To explain Crypto Currency Trading in simple words, an internet user transfer a digital currency to a fellow internet user, the transfer is secure but everyone knows about that transfer which cannot be reversed. Crypto-miners work with special hardware or on cloud tracking all such transaction, complete the blocks and solve the puzzle and get rewards in the form of new bitcoins or transaction fees. The Bitcoin investment by new and experienced buyers or investors are checked online to know the trending rate based on final value of peer-to-peer trade basis and close it if they find the value to be a reasonable and profitable one. The bitcoin value is decided by the trading happening between the buyers and traders. kripto para value is volatile.
Crypto-trading works on the peer-to-peer blockchain technology. Not just one user can control the bitcoin confirmed transaction and create blocks. Many users across locations with special hardwares control the records and update them on distributed networks. Hence no middle man or trusted certified body is needed to manage these blocks. The blockchain technology is an innovation in data recording and distribution in cryptocurrencies transactions. Blockchain was invented by Satoshi Nakamoto in 2008 for trading bitcoins.
How does Blockchain technology works
Blockchains are built from three already proven technologies namely P2P network, private key cryptography and protocol. A peer-to-peer distributed network is needed to authenticate the transaction information. A distributed network eliminated corruption. The private key cryptology provides secure authentication for safer kripto para. There is no need to share personal information and hence it is secure from hackers. The protocol is the design on which the authentication by the network happens. Blockchains can be private, public or consortium.
Blockchains are open to public so nothing can go wrong. Blockchains are not alterable and secure in its design. Blocks hold secure transactions and the linked blocks create a chain. Blocks can be created at the same time across locations by various miners using the proof of work system. Whatsoever secure features blockchain has, there has been many attacks on private blockchains. This is the reason behind the cyber thefts and financial crises in a year.
Blocks or private ledgers have become the basis for many business and corporate in recent times. Banks have started to use the blockchain technology in its working across many countries for its less transaction fees and increased efficient financial improvements.