In cryptocurrency, a network refers to a decentralized system of computers, known as nodes, that are interconnected and communicate with each other to verify and record transactions on a digital ledger called a blockchain.
These nodes work together to maintain the security and integrity of the network by reaching consensus on the validity of transactions through a process called consensus algorithm. This helps prevent fraud and double-spending of digital assets.
Each node in the network stores a copy of the blockchain, making it transparent and immutable. This means that once a transaction is recorded on the blockchain, it cannot be altered or deleted.
The network is essential for the functioning of cryptocurrencies as it allows for peer-to-peer transactions without the need for intermediaries like banks. Additionally, the network ensures that transactions are secure, fast, and reliable.
