YES! Just like other digital currencies, Filecoin is based on blockchain technology.
What is a Blockchain?
Blockchain is a series of blocks that store data. Each block holds a unique number (among other things) and a link that connects one block to another. Every block is an important part of a sequence, and, if changed, will not match the previous or next block, which makes the changed block no longer valid. The degree of difficulty required to make a change to a block is the foundation of blockchain security
In addition, blockchain transactions are secured by cryptography. Each block contains a unique and private key that can be verified with a public key. If there is a change in the transaction-related data, the unique key becomes invalid, which results in the block being discarded from the chain.
Blockchain is also a foundational component of secure, verifiable, and public (or shared) ledgers.
What are Public Ledgers?
Blockchain is a form of public ledger, where a series (or chain) of blocks, where transaction details are recorded after suitable authentication and verification by the designated network participants.
The recording and storage of all confirmed transactions on public ledgers begin at the creation and start of digital currency. As blocks are filled with transaction details, new blocks are mined and added to the blockchain by network miners. The public ledger is distributed as participants connect and contribute to the blockchain network activities keeping it agile and functional.
Since network participants maintain or have access to the ledger, everyone can be aware of who holds digital tokens, how many tokens are held, and whether transactions are authentic and properly recorded.
A combination of the public ledger features, such as consensus algorithms, encryption, and reward mechanisms, ensure that participant’s identities are protected, and only proper transactions are conducted on the network.
Why you Need to talk to a Digital Currency Expert
There are a lot of things to be aware of when you begin investigating digital currency. Network security, ledgers, blockchain, consensus algorithms, and many other terms can be confusing.
The best way to learn about digital currency is to talk to an expert. The experts at Cloud Rush have years of digital currency experience, and we can help you with any questions you may have.
Cloud Rush offers a FREE digital currency consultation. We will be happy to answer any questions you may have about what it takes to set up your own digital currency business.