What is Blockchain: Definition, Types and Functions

Bittime - Blockchain is a distributed digital ledger technology that offers high security and transparency for various types of data, including crypto transactions, banking, and digital asset transfers.

What is Blockchain?

Basically, blockchain is a distributed digital ledger that stores any data. It can store information about cryptocurrency transactions, NFT holdings, or decentralized smart contracts. While conventional databases can store this type of data, blockchain is different because it is completely decentralized. 

Many identical copies of a blockchain database are stored on many computers across a network rather than kept in one place by a centralized administrator, as is the case with a bank database or Excel spreadsheet. This single computer is called a node.

What Does Blockchain Look Like?

Collections of data in a virtual chain that are linked to each other chronologically are called blocks. Blockchain is similar to a train consisting of many carriages connected to each other, with each carriage containing a certain amount of data. This is similar to passengers in a train car in the real world; blocks can only contain a certain amount of data before they are full.

Each block also has a timestamp, which makes it clear when the data was recorded and saved. This is especially important for transaction or supply chain data, as it is critical to know when a package or payment was processed.

How Does Blockchain Work?

The reason why blockchains are considered so secure is their creation process. Before a new block is added to the ledger, most nodes must verify and confirm the validity of the new data. Ensuring that coins are not spent more than once for cryptocurrency or ensuring that new transactions in a block are not fraudulent. Unlike a stand-alone database or spreadsheet, where someone can make changes without anyone else seeing.

For What Purposes is Blockchain Used?

Blockchain is used for many things, such as providing financial services and monitoring voting systems. As for others such as:

Cryptocurrency

One of the most common uses of blockchain today is as the backbone of cryptocurrencies such as Bitcoin or Ethereum. On the blockchain it is recorded every transaction made by people who buy, exchange or spend cryptocurrency. The more people use cryptocurrencies, the wider the spread of blockchain.

Banking

Apart from crypto assets, blockchain is also used to process transactions in fiat currencies, such as dollars and euros. These transactions can be processed more quickly than sending money through banks or other financial institutions because they can be verified and processed outside of regular business hours.

Asset Transfer

Additionally, blockchain can be used to record and transfer ownership of various assets. Currently, digital assets such as NFTs, representations of art ownership, and digital videos are very popular. But blockchain can also be used to process ownership of real assets, such as vehicle deeds and real estate. First, both parties will use blockchain to ensure that one party owns the property and the other party has the money to purchase. After that, they can complete and record the sale on the blockchain.

Conclusion

Blockchain, an innovative technology, can be used as a distributed digital ledger to store various types of data. Blockchain offers security and transparency that conventional databases cannot provide because of its decentralization. With its timestamp and interconnected block structure, blockchain records data with high accuracy and prevents unauthorized changes. Banking, digital and physical asset transfers, cryptocurrencies, and other transactions are used because of blockchain's ability to process and verify transactions quickly and securely. As technology continues to develop, blockchain has the potential to change many aspects of daily life and various industries.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.