January 21, 2023

What Is Blockchain and How Does It Work? | Binany trading platform in India

What is blockchain

In simple terms, blockchain is a decentralized ledger that stores information about all transactions, owners, conduct transactions instantly and make transactions. The main advantage is that such registers are not available to third parties, financial institutions, your data is securely stored.

What is blockchain technology?

The features of this technology are as follows:

  1. An asset is of any kind, whether it be shares, tokens, real estate rights, raw materials, books, etc.
  2. Transactions are exclusively confidential, only the crypto wallet number is indicated
  3. Transactions are almost instantaneous, if you do not take into account the time it takes to confirm them. It depends on the consensus used by the given blockchain network. Consensus – in the field of blockchain definitions, this is the achievement of an agreement that allows you to restore information about a network member.
  4. Minimum commissions, as transactions are registered by miners. Miners are blockchain participants that perform the functions of storing information, confirming information, registering and verifying transactions. Why do they need it? They receive a certain reward for this. Since it is possible to become a miner only with specialized equipment and software.
  5. Reliable protection of all rights.
  6. Reliable storage of information, as it is distributed among all network participants and is divided into blocks that contain information about all operations from the very beginning.

What is blockchain and cryptocurrency in India?

The technology6 that underlies the cryptocurrency is the blockchain. How it works? Participants start checking blocks of information and approve or reject the request after consensus.

For this, two-factor authentication is used. What does this mean? For example, you may be asked to enter username/password information. After that, you will receive a request for an authentication code from an SMS message on your phone.

What is the reason for the growth of cryptocurrency in India? This area, indeed, is relevant and is gaining popularity more and more.

First of all, this is due to high inflation rates and various restrictive ways of investing. Far-sighted investors are interested in creating cryptocurrency exchanges and cryptocurrency trading in India.

The most popular types of cryptocurrencies in India are:

  • OG – Bitcoin (BTC)
  •  Polygon (MATIC)
  •  Litecoin (LTC)
  •  Binance Coin (BNB)
  •  Polkadot (DOT)
  •  Cardano (ADA)
  •  Solana (SOL)

First, you need to understand the definition of this term. Cryptocurrency is any kind of currency in any form – digital or virtual. To protect transactions in cryptocurrency, special encryption is used, it is also called cryptography. There is no central authority to issue or regulate cryptocurrencies.

A decentralized system is used to record transactions and issue new units. Cryptocurrencies are processed in a specialized distributed public registry – blockchain, where records of all transactions are distributed and stored, updated by the currency holders themselves.

Cryptocurrency units (coins) are created during the mining process. This process is not similar to the procedure for creating conventional banknotes. Mining uses the computing power of a computer to solve mathematical problems, as a result of which coins are generated. Users can also buy currency from brokers and then store and spend it using cryptographic wallets.

Where to trade cryptocurrency in India?

Speaking about the purchase and sale of cryptocurrencies, you should to mention the Binany website. What is the Binany trading platform?

  • GEO – India, Bangladesh, Malaysia, Indonesia, Thailand, Vietnam, Pakistan, Ghana, South Africa, Nigeria, Brazil, Chile, Mexico.
  • Year of foundation – 2019
  • Languages ​​- English
  • Currency – Indian rupee (INR), taka (BDT).
  • Deposit/withdrawal methods – Perfect Money, PayPall, Neteller, Skrill
  • Product type – stock, currency, cryptocurrency, binary options trading
  • Application – for android
  • Bonuses – +100% on the first deposit
  • Support – chat, mail – [email protected], 24/7 support in 10 languages ​​(Russian, English, German, Turkish, French, Indian, Chinese, Vietnamese, Thai, Portuguese)

How do options work? Let’s explore binany1.com reviews.

An option is a derivative asset, its price depends on the value of the underlying shares. Based on this, trading has a high risk as well as profitability.

On your lucky day, a 1% increase in the underlying stock could equal a 5% increase in your entire options portfolio. Unfortunately, the situation can be reversed as well. Due to the high risk, investors are not always ready to invest all their funds in options for fear of incurring unexpected losses.

Where there is risk, there is always profit. Where there is profit, there is always risk. Before you start making a profit (up to 90% of the transaction amount), you need to know that every risk, like every income, is fixed in advance.

As mentioned earlier, closing a deal is one of the easiest and most affordable ways to make money. The minimum stake (in other words, the amount of the transaction) on Binany.com is 30 rupees. And the minimum deposit amount is 300 rupees.

Main types of options:

All options are divided into three types depending on the period of implementation – American, European and Bermuda.

“European”

The contract has a definite, predetermined period of validity (expiration of a fixed-term contract and settlement of the parties).

For example, if a trader bought a contract with execution in 15 minutes, then it is impossible to close it before the expiration of this period. These options are used for short-term trading with aggressive strategies.

“American”

This is a contract in which the trade is closed when the price reaches a certain level. The trader is not required to wait for the expiration of the option specified at the time of purchase.

Due to democratic conditions, American-style options have a lower yield. They are most profitable when using moderate strategies in medium-term trading.

“Bermuda”

In the Bermuda or Mid-Atlantic version, there are so-called time windows. When such a window is reached, the trader has the right to close his contract at the current price at that time.

Bermuda options are interesting for long-term trading, and time windows for redemption are usually indicated for the entire period of the option’s existence.

What’s the point of this process?

First you need to make a deal. We choose the expiration time (that is, the option closing time) and wait for the end of precious seconds. The platform will check if you made a correct prediction, and if it turns out to be correct, then you will receive a profit of up to 90% of the invested amount.

Binary options are a relatively new financial instrument with which a trader can trade precious metals and oil or currency pairs (liquid goods). Simply put, this is a bet with two possible options: a correct forecast and a profit, or a wrong forecast and a loss of investment.

They take part of their name from the structure of the trades themselves, since each trade has two (“bi”) possible outcomes.

Popular currency pairs to trade on Binany:

  • The currency pair in the binary options industry is a common asset among binary traders.
  • GBP/USD is the ratio of the British pound to the US dollar. Sufficiently high volatility and frequent breakouts of levels
  • EUR/JPY OTC – the ratio of the euro to the Japanese yen. This couple is unpredictable.
  • USD/JPY OTC – the ratio of the US dollar to the Japanese yen
  • NZD/CAD – ratio of the New Zealand dollar to the Canadian dollar
  • GBP/USD OTC – the ratio of the British pound to the US dollar. One of the hottest on the market
  • GBP/NZD is the ratio of the British pound to the New Zealand dollar. This pair is popular mainly among experienced Binany traders.

How Does a Blockchain Work?

A blockchain can be compared to a ledger that keeps records of all transactions. However, there is only one ledger, and the blockchain is divided into many blocks that store information on different devices about different owners and their transactions from the very beginning.

What is blockchain in technology?

Ownership in the blockchain is determined using two cryptographic keys. The first of them is in the blockchain in the public domain, the second is available only to the owner.

Considering an example, imagine ordinary encryption. One person sent a message encrypted using the public key, the recipient decrypted it using the private key, which only he knows. In blockchain technology, the situation is the same – transactions have their own closed encryption – available to their owner. And these transactions correspond to public keys, that is, to the coins that the owner wants to spend.

Since many people are involved in this system, the process of irreversibility is important. What does this mean? If the blockchain were controlled by a single entity, such as a bank (and this is a standard set of validators that operate within the same jurisdiction), then the execution of transactions would be a simple and insecure process.

The irreversibility of the operation is provided by the bitcoin code. The scheme is used – the very proof of work. You are probably wondering: why is this necessary? Let’s try to figure it out. The miner creates a block with information about the transaction in order to create a new block – he must own all the information about the transactions. And as mentioned above, each miner stores certain information for which he will receive a reward.

Then what prevents him from deleting this information and duplicating this block in order to receive a reward again for nothing? It is the bitcoin code that allows you to control this process. When a new block is added, the miner must provide a cryptographic proof of the transaction – this is a fixed set of letters and numbers (hash). In order for the process of creating a hash to be reliable, a certain number of zeros are first set.

The selection of numbers and letters for the correct sequence is selected until the correct number is found. As a result, it is sent to other miners for verification, and if everything matches, a block is created and fixed in the computer. If we draw a parallel with opening a door: a person wants to pick up a key to open the door. But he has a large number of keys, which one is suitable – he does not know.

In this case, he has to check each in turn until he finds the right one. He leaves the key in the lock for checking by others who want to open the door, and in the event that the key fits, the door opens and the key is placed in a certain box for storage.

Miners spend their own money on expensive hardware to keep the system running. And in order to change a block or carry out the same transaction twice, you will have to spend electricity and time again – which becomes unprofitable. Therefore, cheating becomes unprofitable and the system works reliably. In addition, each new block raises the cost of changing previous blocks.

Thus, miners provide expensive proof of their work, for which they receive rewards.

What is token in blockchain?

A token is a conditional digital unit that is synchronized with the blockchain database and guarantees the company’s obligations to its owner.

Is Blockchain Secure?

As mentioned above, each new block has a record / cryptographic code of the previous one. To change one block, you will have to change all subsequent ones – which is not beneficial for miners. Answering the question “how is blockchain secure”, we can say with confidence that the system is reliable.

How secure is blockchain really?

All transactions are verified by a common consensus. Blockchain provides decentralized data security.

Cryptocurrency: Blockchain vs Blockchain

To understand the differences between two similar structures, each should be defined.

Bitcoin is a digital currency/payment system/cryptocurrency, with the help of which users can anonymously make financial transactions without the intervention of a third-party authority.

Blockchain is the technology or distributed ledger that underpins bitcoin. This is maintaining a common transparent accounting system, auditing the supply chain, providing insurance and much more.

Drawing a parallel between bitcoin vs blockchain, we summarize that the blockchain is something more than bitcoin. Without blockchain, there would be no bitcoin.

Blockchain vs. banks

Comparing the two database systems, let’s focus on the key points of each. It will be about blockchain vs banks.

Blockchain offers a ledger with immutable information available to all, without the need for a large number of intermediaries to complete the transaction.

As for banks, each division is controlled by the government – ​​something that is not on the blockchain. Sometimes banks have to deal with a single point of failure, which leads to the complete inoperability of the system. What will not happen in the blockchain, since the decentralized.

How Are Blockchains Used?

Let’s talk about the benefits of blockchain, which are used by other areas, as an increase in productivity and reliability.

 Uses of blockchain technology:

  • transfers of funds to the blockchain (efficient transfer of funds without third-party fees in order to save the finances of companies)
  • chainaalysis (control and tracking of fraudulent trade violations, laundering, as a company software
  • blockchain applications for supply chain and logistics
  • healthcare blockchain application
  • music blockchain applications (will allow the show business industry, artists to manage copyright, guaranteeing reliability)
  • smart contracts (there are no intermediaries for the parties, but accountability levels are added to both parties)
  • decentralized real estate market (instant release of property rights)
  •  voting and government applications (transparency and security)

And at least 30 more different services that could become more efficient and less expensive if use cases of blockchain.

Pros and Cons of Blockchain

Having done a lot of research on this issue and having studied various sources, we can summarize in the form of a table: pros and cons of blockchain technology

Per Against
Decentralized Trust Reduce Fraud
Lower additional cost Transparent and versatile recording system
No single point of failure Better Accessibility
Enhanced Security & Privacy Prevents double spending
Fast transactions Seamless Integration into Existing Systems

 

And yet, I would like to draw attention to the fact that investing is associated with risks. The cryptocurrency exchange system is reliable, but success in trading will depend only on you.

Blockchain technology pros and cons have helped you put aside your fears that electronic money (cryptocurrency) is easier to steal. This is far from the case, because the system is really thought out and will not fail.

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