What Does Blockchain Clear (Blockchain Operation Process)

What does blockchain clear? According to the financial industry report, what does blockchain clear? For ordinary banks, they can transfer their funds to other places. However, in the field of cryptocurrency, there are still many issues. For example, the value of Bitcoin being stolen or the exchange being inaccessible resulting in account loss for users; due to the large fluctuations in Bitcoin prices, some trading platforms and wallets may freeze or close accounts to prevent asset losses and so on. But this does not necessarily mean that the risks of these trading platforms will be completely ignored.

In addition, there is another major issue that, although most digital coins are controlled and maintained by centralized institutions, under certain conditions, this system is easily influenced by third parties. For example, without the involvement of intermediaries, it may cause huge losses. Such systems are usually controlled and managed by centralized companies. Therefore, we need to understand why there are so many companies operating through this platform.

Blockchain Operation Process

How is the blockchain operation process implemented? Simply put, it is through block validation in the network. When the nodes reach a consensus, they derive a consistent result through the verification and analysis of transaction data, ensuring the normal operation of the entire system without rechecking whether each participant’s data is the same or different.

If you want to remember this rule, you must first understand and use the algorithm, and then you will know when, why, and at what time the transaction occurred and was recorded. This is what blockchain refers to as “decentralized” or “publicly transparent”, which means that “distributed ledger technology” (DLT) can make it easier for developers to build applications.