Understanding Blockchain Technology for Traders
Essential blockchain knowledge for informed crypto investing
By GTO Education Team
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September 20, 2021
BLOCKCHAIN FUNDAMENTALS
What is Blockchain?
- Distributed digital ledger technology
- Immutable transaction records
- Decentralized network consensus
Key Blockchain Concepts
Decentralization
- No central authority control
- Network consensus mechanisms
- Distributed node validation
Immutability
- Once recorded, cannot be altered
- Cryptographic hash protection
- Historical transaction integrity
Transparency
- Publicly verifiable transactions
- Open source codebase
- Community audit capability
SECURITY FEATURES
Cryptographic Security
- Public-private key encryption
- Digital signature verification
- Hash function protection
Network Consensus
- Proof of Work validation
- Proof of Stake verification
- Other consensus mechanisms
Understanding these fundamentals helps investors evaluate projects and make informed decisions.