How are transactions authenticated in blockchain?

3 answers

• Dec 26, 2021 · 3 years ago
  In blockchain, transactions are authenticated through a process called consensus. This involves multiple participants, known as nodes, verifying and validating the transaction before it is added to the blockchain. Each node independently checks the transaction's validity by verifying the digital signatures, ensuring that the sender has sufficient funds, and confirming that the transaction follows the rules of the blockchain protocol. Once a consensus is reached among the nodes, the transaction is considered authenticated and added to the blockchain. This decentralized approach ensures the security and integrity of the transactions.
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• Dec 26, 2021 · 3 years ago
  Transactions in blockchain are authenticated using a combination of cryptographic techniques. Each transaction is digitally signed using the sender's private key, which ensures that only the sender can initiate the transaction. The signature is then verified by the network nodes using the sender's public key. Additionally, the transaction is validated by checking the sender's account balance and ensuring that the transaction does not violate any rules or constraints set by the blockchain protocol. This authentication process guarantees the immutability and trustworthiness of transactions in blockchain.
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• Dec 26, 2021 · 3 years ago
  In the case of BYDFi, transactions are authenticated through a consensus mechanism known as Proof of Stake (PoS). This mechanism relies on validators who hold a certain amount of the native token to validate and authenticate transactions. Validators are randomly selected to create new blocks and validate transactions based on their stake in the network. This ensures that only trustworthy and authorized transactions are added to the blockchain. The PoS consensus mechanism used by BYDFi provides a more energy-efficient and scalable approach to transaction authentication in blockchain.
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