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Did You Know This About Blockchain Technology?




Mantra Dao - Did You Know This About Blockchain Technology?

For about 13 years, blockchain technology has been growing rapidly and is now becoming the bottom-line for most industries. In the supply chain sector, it is preferred for promoting traceability. It is also very helpful in healthcare, agriculture, manufacturing, and banking. So, if you are new to the blockchain technology application, it is very important to start by understanding how it works. Here are some important attributes about blockchain and its application that you probably never knew.

What is a Blockchain?

A blockchain is a distributed database that is shared by all the nodes/users in a network. It is designed to store data electronically in small blocks so that it ultimately looks like a type of continuous chain. As a distributed ledger, it means that the blockchain is not owned by any single individual. Rather, it belongs to all parties involved in the network. These include nodes that confirm transactions, developers, and users.

Important Characteristics of Blockchain Technology

Blockchains are Governed through Consensus

Before you can join any blockchain network, it is important to think about its governance. Governance is the method used for making decisions on blockchain networks. The most common model is the decentralized governance system, where all the users on a network participate in voting. It is the model used in the Bitcoin blockchain network.

Another method of governance is the decentralized system, where a few delegates vote on behalf of the rest. The main advantage of this method is that important decisions are not left on non-technical blockchain users. Instead, experts with the network at heart, such as the network founder and developers, are entrusted with major decisions. However, nodes are still involved in making some decisions.

If you are unsure of the crypto or blockchain network to select, consider working with experts.  For example, top Decentralized Finance (DEFI) platforms have experts who can help you narrow down to the high-potential cryptos.

Information Added to Blockchains is Permanent

One attribute that makes blockchain technologies desirable is that information added to them is immutable. Unlike the standard banking system, where the top management is in charge of customer data, blockchain networks operate differently. By using a consensus system, it implies that all nodes spread in the system must first agree to any changes. This is never easy, and the information added to the blocks is unchangeable.

You can Make Passive Income by Staking Your Coins

If you select a blockchain network that uses proof of stake (PoS) consensus protocol, it is possible to earn some passive income. Blockchains that use PoS protocols allow users or nodes with some native coins to stake them to help confirm transactions and protect the network. Here is how it works.

First, you identify a good decentralized finance (DeFi) platform and open a staking account. Then, send your PoS coins to the platform’s pool. The DeFi platform will combine the coins together with others to raise the chances of getting more opportunities to forge new blocks. Then, the rewards will be divided among the stakers based on the coins they have in the pool.

The lovely thing about crypto staking is that you do not sell your coins. Instead, you only commit them, allowing them to work alongside others in the pool to generate passive income. Make sure to identify and work with the best finance (DeFi) platform for higher returns.

Blockchain technology has proved to be a reliable system that people can count on for success in their businesses. To take advantage of the associated benefits, it is important to start by understanding how it works.

Reach out to Mantra Dao now for all that you want to know about blockchain technology and its application.

Mantra Dao


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