What is the Role of Blockchain in Cryptocurrency?

Blockchain technology serves as the backbone of cryptocurrencies, providing a decentralized and secure method for recording transactions. Each transaction is stored in a block, which is then linked to the previous block, forming a chain. This structure makes it nearly impossible to alter transaction history, ensuring transparency and trust. By eliminating intermediaries, blockchain allows for peer-to-peer transactions, significantly reducing transaction costs and processing times. The decentralized nature of blockchain also enhances security, as data is distributed across a network of computers, making it resistant to hacks and fraud. Additionally, the consensus mechanisms employed by blockchains—such as Proof of Work or Proof of Stake—ensure that all participants agree on the transaction's validity, further securing the network. Overall, blockchain technology provides a reliable framework for cryptocurrencies, promoting efficiency and trust in digital transactions.

source: www.blockchainappfactory.com/cryptocurrency-development