The EOT Blockchain is an immutable record of all EOT transactions, stored on a network of computers thus creating a distributed ledger of all transactions.
How Does the EOT Blockchain Work?
When EOT started a first version of the record in the ledger was created and stored in what is block 1 or otherwise known as the Genesis block.
All information on the blockchain are stored in files which are encrypted, in the world of cryptocurrency, these files are known as wallets.
Every file/wallet has an identifying address on the blockchain called its public key. This key is known and is public information. There is, however, a second key which is called the private key which is only known to the user/owner of that specific EOT Wallet. To send a transaction from a wallet, the owner of that Wallet needs to sign the transaction with a private key. Once the transaction is signed by the valid owner it is recorded.
In the case above, the ownership of the wallet has been verified by the private key but what stops the owner sending a false transaction.
Thus we need a verification process, this is called mining.
When new transactions are created, these transactions need to be confirmed by other users of the network to ensure that they are proper transactions and can indeed be settled.
Miners are users of the network who runs a copy of the blockchain and will check and confirm the authenticity of every transaction. Once these transactions are confirmed, a new block is created with the new transactions and values now part of the immutable chain.
In the EOT network, this confirmation is very fast as a new block is mined every 90 seconds.
To compensate miners for their confirmation efforts the EOT network has in it’s source code, a miner’s reward. For every block mined, the miners who mined that block will receive 100 EOT. That means that 100 new EOT’s are created every 90 seconds as a miners reward.
However, the mining reward is halved approximately every 17 months and a total amount of 100 Million EOT can be mined. This amount can never be increased thus making EOT deflationary in its nature as a currency.
Once the transactions are confirmed, the new block is mined, it is then added as the next block thus creating a chain of blocks or the EOT Blockchain.
For more information on EOT – https://eotcoin.org/
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