If you are one of the many people who are interested in investing in blockchain hedge funds, it is important to take the right initial steps. Start by knowing what blockchain is and how it works. Here’s a quick guide for you.
What is blockchain?
Blockchain is the technology used by the Bitcoin network for its record-keeping. Crypto marketing agency would normally describe it in layman’s term as a “distributed and decentralized public ledger.” While this definition may sound too generic, you can easily grasp the meaning of blockchain once you know the technicalities behind it.
As the name implies, blockchain is simply a chain of blocks. Block here is the term that describes a piece of digital information. It is comprised of three major pieces of data: transaction data, transactor’s data, and the hash. Information on the transaction includes the time, date, and amount of the purchase. The information on who carried out the transaction includes the record of their unique digital signature, similar to a username, instead of their real name. Lastly, the hash is cryptographic code that serves as the information that distinguishes them from other blocks.
On Bitcoin blockchains, a block can store around 1 MB of data. This, however, depends on the size of the transaction, which means a block could possibly store a few thousand transactions. Once a block stores up new information, it goes to be part of the blockchain. And for it to be included to the chain, a transaction must first be carried out, undergo verification, and stored in a block. The moment this happens, a hash is given to the block. And after its inclusion to the blockchain, it is made available for public viewing.
Cryptocurrency trading can be a bit intimidating due to its many terminologies and technicalities. But with enough research and assistance from experts, it can be a great way to grow your money. Blockchain is just one of the things you need to learn when investing in Bitcoin. Seek the help of experts to learn more about this cryptocurrency and the investment opportunities it brings.