Unraveling what Crypto Micropayment is and how it works and what the benefits are is pretty interesting.
When we buy or sell things, payment is usually processed by a bank or credit card company. So we have to trust these companies to protect our sensitive data from hackers.
To solve these problems, we could use a special currency that is secure and based on the science of cryptography, i.e. encryption.
Cryptocurrency is a digital or you can say a virtual currency designed to work as arbitrate of exchange in which encryption is used to regulate and verify the transfer.
A micropayment is an e-commerce/financial transaction of a minimal amount.
So crypto micropayment is a small financial transaction done via an encrypted medium that can be done using crypto-currency.
All Crypto-currencies make use of ‘distributed ledger technology’ known as a blockchain. (See also: Blockchain Technology Stats and Facts?)
Blockchain technology at some point will transform how we consume, deliver, and pay for media content, from news and scholarly papers to music and entertainment.
This transformation will guide and perhaps even resolve—some of the most critical pain points in the media industry.
Future of blockchain:
The future applications of blockchain are endless, from peer-to-peer banking, greater financial transparency within organizations, and cybersecurity to tracking supply chains or giving people greater control over their digital identities.
How are blockchain transactions processed and verified?
Overall the sequence of steps are;
- Somebody Requests a Transaction.
- The transaction is broadcasted to all peer to peer computers in the specific blockchain network.
- Every computer in the network confirms/checks the transaction against some authentication rules that are set by the creators of the particular blockchain network.
- Authorized transactions are stored into a block and are seal with a lock (hash).
- This block becomes part of the existing blockchain when other computers in the network authenticate if the hash (lock) on the block is correct.
- Now, this transaction is part of the blockchain and cannot be altered in any way.
In the future, no matter where you turn, this technology will be everywhere as it has limitless potential.
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