Blockchain 101: All You Need to Know
March 5, 2023
Blockchain technology is a relatively simple yet often misunderstood concept that has the ability to facilitate near-instant and cost-effective value transfers across distances and countries. Empowch, for example, operates in the utility of blockchain and not in the alt coin realm, and is focused on providing financial services solutions to real people with real problems.
At its core, blockchain technology is a highly secure system that operates based on a consensus mechanism. Unlike traditional internet and business structures that rely on a centralized database to process and secure user information, the blockchain operates differently. It uses encryption to ensure the privacy and security of the information it holds.
Before information is added to the blockchain, it undergoes a complex encryption process. The information is first encrypted using 256 bit encryption and then a random code is generated, which is concatenated to the encrypted information. This random code is generated using real-world catalysts such as atmospheric noise or radioactive decay, making it almost impossible to predict or replicate.
Once the random code is added to the encrypted information, the system splits the information up and writes it onto several different, disconnected nodes. The system then confirms that the previous blockchain header has not been tampered with and writes the encrypted information with the header information and the random code, before closing the block and adding it to the blockchain network. The information is then distributed back to the nodes and stored.
The result of this system is not only a transparent structure, but also an anonymous one, making it extremely difficult to cheat or hack the system. The Stellar Blockchain, which Empowch uses, has also significantly reduced the energy consumption required to verify transactions, making it a more sustainable option in comparison to other blockchain platforms.
Make safer, transparent and faster transactions with Empowch; get your wallet now!