What is a Blockchain Network? Basic Cryptocurrency Knowledge!

Blockchain Network is all the nodes involved in the operation of a blockchain at any point in time. Blockchain as a distributed ledger, enables centralized or decentralized recording and management of assets.

The process of recording new transactions in the blockchain is validated by nodes, which then update the ledger with the latest transactions. Overall, all these nodes form a blockchain network.

How Blockchain Network Works?

The blockchain network can record transactions which are useful for creating smart contracts. These smart contracts are used to connect transactions, run more complex systems, and run decentralized applications (DApps) in various sectors, such as GameFi or DeFi.

Main Features of Blockchain Network

• Speed: Blockchains have transaction confirmation times that range from a few seconds to a few minutes.
• Consistency: The network operates online 24/7.
• Fees: Transaction fees are low, often under one cent per transaction.
• Security: The nodes in the network help maintain security from potential hacking risks.
• Immutability: The network maintains tamper-evident records of payments, visible to anyone who needs to audit the transaction.

Types of Blockchain Network

Blockchain Public Network 

Censorship-resistant and accessible to anyone worldwide. Known as consensus mechanisms such as proof-of-work or proof-of-stake. Examples of public networks include Bitcoin and Ethereum.

Blockchain Private Network

Operated by a single entity or group of entities that grant access permissions to the distributed ledger. Generally less decentralized or even completely centralized. Usually used by companies to record transactions or store internal data.

It is important to understand that these network characteristics form the basis for the success of a blockchain network, and selecting the appropriate network type can have a significant impact on the usage and applications that can be developed in the Web3 ecosystem.

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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.