Blockchain Layer

The Blockchain Layer in cryptocurrency refers to the underlying technology that serves as a foundation for digital transactions. It is essentially a decentralized database that stores a continuously growing list of records, known as blocks, which are linked and secured using cryptographic principles.

Each block contains a list of transactions, a timestamp, and a reference to the previous block, creating a chain of blocks hence the name “blockchain”. This layer ensures transparency, security, and immutability of transactions, as every participant in the network has access to the same information, and any attempt to alter data in a block would require consensus from the majority of participants.

By utilizing this layer, cryptocurrencies can operate without the need for a central authority or intermediary, making transactions faster, more secure, and more cost-effective. The blockchain layer has become a fundamental component of the cryptocurrency ecosystem, providing a reliable and efficient way to conduct digital transactions.