Blockchain has brought radical transformation in the technological landscape. However, a new enthusiast is often intrigued by the vast number of terms associated with it. Blockchain is simply a distributed ledger secured by cryptography.
New blocks are added by miners by a process of mining and it requires excessive amount of processing power. In a blockchain ecosystem, there are a large number of nodes, each having a copy of blockchain. Different consensus mechanisms like Proof of Work and Proof of Stake are used to validate block transactions.
Cryptocurrency Terms Infographic:
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With a large number of investors keen to invest in cryptocurrencies it is also necessary that there is a secure storage system to hold crypto assets. Storage options include software wallets hardware wallets and paper wallets. Software wallets are ideal for storing small amounts of cryptocurrency. They are easier to access and have a quick transaction time. But, on the other hand they are prone to hacking and theft.
Hardware wallet keeps the private keys stored offline. It offers more security and is preferred by investors. Moreover, it is portable and can be easily kept in a pocket. They can be used to several cryptocurrencies. With a paper wallet keys private and public keys are securely generated by a software program and then printed out.