How do Cryptocurrencies use the Blockchain?

Although bitcoin and similar coins use blockchain technology, they do it in different ways. Since Bitcoin was invented for the first time, it has undergone some changes at the behest of its main developers and the community in general, and other currencies have been created that operate in slightly different ways.

That block verifies and registers, or "certifies" new transactions that have taken place. For that to happen, the "miners," or producers, use powerful computer hardware to provide a proof of work, a calculation that creates a number that verifies the block and the transactions it contains. Several of these confirmations must be received before a bitcoin transaction can be considered effectively complete, even if technically the real bitcoin is transferred almost instantaneously.
This is where Bitcoin has had problems in recent months. As the number of bitcoin transactions increased considerably, the time of 10 to create a block means that it takes longer to confirm all transactions, and delays may occur.



How Bitcoin Work?

With certain alternative currencies, the process is a bit different. With Litecoin it takes two and a half minutes, while with Ethereum the time to create each block is only 10 to 20 seconds, so confirmations happen much faster. There are obvious benefits, although having blocks that are generated at a faster rate there is a greater chance of errors occurring. Will it be very good to be true?
Do you remember all the computing power that is required to verify transactions? Those computers need electricity. Bitcoin is an example of the problem in scale because of the power demand of a large blockchain network. In other words, transactions and production cost a lot of money because of the great need for energy consumption.

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Although the exact statistics on the bitcoin power requirements are difficult, they are regularly compared with the energy needed to boost some small countries in their current state. That is not attractive, given current concerns about climate change, the availability of electric power in developing countries and the reliability of that energy in developed nations.

Why Blockchain Technology is so Popular:

The transaction speed is also a problem. As we mentioned earlier, the blocks in a chain must be verified by the distributed network, and that can take time. A good amount of time. At its worst, the bitcoin average transaction time exceeded 41 hours. Ethereum is much more efficient, but even so, your average time is around 15 to 20 seconds, which would be an eternity on a pay line at a local supermarket. Block chains used for purposes other than cryptocurrency could have similar problems.

These problems should be solved as the Block Chain technology becomes more popular. Even so, considering that we are less than a decade away from the first implementation of Blockchain, these are the first steps, and it could be probable that as it improves, some segments decide to adopt this new idea.

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