Secure cryptocurrency exchange technology: what is the blockchain?

Over the last few years, the term “blockchain technology” has been increasingly used in discussions about finance and technology.

A blockchain is essentially a digital distributed ledger that can track and record all transactions across a network of multiple locations and entities. By removing the need for intermediaries, this technology allows direct interaction between individuals in a decentralised manner. In contrast to conventional databases, the blockchain is completely transparent, being widely distributed and openly accessible to all.

Cryptocurrencies played an important role in the popularisation of blockchain technology, as they were the first widely adopted blockchain application. By harnessing the decentralised power of the blockchain, anyone can participate in a secure cryptocurrency exchange and pursue their financial goals.

Here at Bintense, we have implemented a secure cryptocurrency exchange system where all users can efficiently connect to the cryptocurrency sphere. We have always made it a priority to facilitate our customers with professional support, transparent conditions and state-of-the-art security, thus improving their experience in the market.

What exactly is a blockchain and how does it work?

The blockchain uses certain cryptographic techniques to combine “blocks” of records in chronological order. Virtual chain. Each transaction is independently verifiable on peer-to-peer computer networks, given a time stamp and becomes a permanent part of the ledger.

Recorded data stored in the blockchain becomes immune to any modification. In addition, there is no single authority in the blockchain area. Rather, each person involved in the network, known as a “node”, stores its own duplicate. This decentralised structure eliminates the risk of a single point of failure.

Therefore, here is a generalised version of the blockchain process that takes place during the secure exchange of a cryptocurrency (in this case, Bitcoin):

• A Bitcoin transaction authentication request is submitted to the blockchain network.
• A new block is created that represents the transaction and captures its information.
• The buying and selling of bitcoins is recorded and transmitted to a vast network of computers called nodes.
• These nodes compete for the approval of a transaction by solving complex algorithms – a process called bitcoin mining.
• In most cases, the proof-of-work system rewards the node that first confirms the transaction.
• Once the purchase is cryptographically validated, it becomes part of a distributed ledger block, which is accessed by consensus of the majority of the network members.
• An updated version of the blockchain, reflecting a permanent transaction record, is being rolled out across the network.
• The transaction is already complete, thus completing the process.

Please note that all these steps are done in the background, so that all regular cryptocurrency users do not have to deal directly with the complex process.

The many benefits of blockchain in addition to the secure exchange of cryptocurrencies

Despite being commonly associated with cryptocurrencies and facilitating the secure exchange of cryptocurrencies, the potential of blockchain technology is not limited to digital assets. Its exceptional ability to incorporate and preserve information allows it to play a variety of roles in a wide range of industries, including healthcare, supply chain monitoring, data sharing, cybersecurity and many others.

The absence of centralised institutions also reduces costs by eliminating the fees associated with third party transactions. In addition, the operation of the blockchain is characterised by its remarkable time-efficiency, as it operates 24 hours a day, every day of the year.

In addition, developers have created a wide range of products and applications, including decentralised finance (DeFi) products, meta-business games and NFTs – all of which harness the disruptive power of blockchain technology.