Blockchain is a kind of Public Registry of all transactions that have taken place on the network, which uses a cryptographic system that provides great security in the transactions and movements that occur therein. How? Thanks to the P2P networks (peer-to-peer, that is, from user to user – without the need for intermediaries), to cryptography and to the tests of work chained by miners.Click here to know about litecoin.
It is like an accounting book
The blockchain works like an accounting book that is managed in a decentralized manner by people known as ” miners.” These miners are responsible for verifying all transactions that take place on the network;what they do is, since any transaction is made on the network and once it is communicated to these miners, review, in a computerized way and in a matter of minutes, all the transactions that have been made in Bitcoin since its inception to identify (i) the first origin of those bitcoins that are intended to be transmitted, (ii) the identity of the user who transmits them(more than an identity, its public key and its private key) and (iii) the identity of the user who receives them (more than an identity, its public key – no need to show the private key).Visit this site to know about litecoin.
The prize of mining
If all of the above is correct, the first miner who can decipher, through mathematical algorithms, (a number issued randomly by the system itself and for each transaction in order to make it difficult to incentivize the work of the miners so that it is finally Only one who gets the prize that implies being the first to truly verify the transaction) will receive a prize (a specific amount in bitcoins).
What kind of contract are Smart Contracts?
It can hardly be considered a contract. Rather, it is a tool to facilitate the execution of contracts. It ensures a proper transaction without the involvement of a third party.