How does peer to peer architecture work in the context of digital currencies?

1 answers

• Jan 14, 2022 · 3 years ago
  In the context of digital currencies, peer to peer architecture works by creating a network of nodes that communicate and validate transactions. Each node in the network maintains a copy of the blockchain, which is a decentralized ledger that records all transactions. When a user initiates a transaction, it is broadcasted to the network, and the nodes work together to verify the transaction's validity. Once verified, the transaction is added to a block and added to the blockchain. This architecture ensures that no single entity has control over the network, making it more secure and resistant to censorship. Peer to peer architecture also enables faster and more efficient transactions, as there is no need for intermediaries to facilitate the process.
  759380