What is blockchain technology? How does it work?

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What is the Blockchain?

Blockchain technology is a way of keeping track of information securely and transparently using a digital ledger. Think of a ledger like a notebook where you record information, except this one is digital and can't be easily altered or tampered with.

The way blockchain works is by creating blocks of information that are linked together in a chain. Each block contains a record of some transactions or data, like a list of who bought what or when a document was created. Each block also has a unique code, called a "hash," that identifies it and makes sure that it can't be changed without being detected.

Once a block is added to the chain, it can't be modified or deleted without changing all the blocks that come after it. This means that once something is recorded on the blockchain, it's there for good, and everyone can see it. This makes the technology very secure and transparent, as it's very difficult to hack or manipulate.

Game of Silks operates within the Ethereum blockchain, which like Bitcoin, uses the blockchain to keep track of transactions, but it goes beyond that by allowing people to create and execute "smart contracts" on the blockchain. These smart contracts are like computer programs that automatically execute a set of actions when certain conditions are met. In Silks case, the facilitation of reward payouts will be conducted with the use of smart contracts. More on these below.

What are Smart Contracts?

Smart contracts are self-executing computer programs that run on the Ethereum blockchain. They are used to automatically execute the terms of an agreement or transaction, without the need for a middleman or central authority.

Smart contracts are considered to be more secure and trustworthy than traditional contracts because they are stored on the blockchain, which is a decentralized and immutable ledger. This means that once a smart contract is executed, it cannot be altered or reversed, ensuring that the terms of the agreement are carried out as intended.

The Main Function: Keeping Your Assets Secure

NFTs are unique digital assets that are stored on the Ethereum blockchain, and each NFT is represented by a unique smart contract. The smart contract contains information about the NFT, such as its ownership, its metadata (such as the name, description, and image), and the rules for its transfer.

 

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