2025-08-30
In the era of continuous innovation of digital technology, As a disruptive technology, blockchain is quietly reshaping the landscape of many industries. From asset transactions in the financial sector to supply chain traceability management, blockchain is everywhere. However, the complex operating mechanism behind it has puzzled many people. So, how exactly does blockchain work? The following will uncover its mystery for you layer by layer.
The core of blockchain operation is a distributed ledger system. Unlike traditional centralized ledgers, distributed ledgers store copies of data in various nodes in the network, each node has complete or partial ledger information, and jointly participates in the maintenance and update of data. Take HashKey Exchange as an example, every digital asset transaction on the platform will be recorded in the distributed ledger, and each node verifies each other to ensure that the data cannot be tampered with and is open and transparent. This decentralized storage method breaks the dependence of traditional centralized systems on a single institution. Even if a node fails, the entire system can still operate stably, greatly improving the reliability and security of data.
In the blockchain network, how nodes distributed around the world reach a consensus on transaction records is the key to the normal operation of the blockchain. Common consensus mechanisms such as Proof of Work (PoW) and Proof of Stake (PoS) play an important role. Taking the PoW mechanism as an example, nodes need to compete for bookkeeping rights by calculating complex mathematical puzzles. The node that solves the puzzle first packages the transaction into a new block and broadcasts it to other nodes for verification. When more than half of the nodes approve, the new block can be added to the blockchain. In the HashKey Exchange transaction process, it is through the consensus mechanism that all nodes agree on the transaction record, effectively avoiding the double spending problem and ensuring the orderly progress of the transaction.
Encryption technology is an indispensable guarantee for the operation of the blockchain. Hash algorithms and public and private key encryption systems cooperate with each other to build a solid line of defense for data security. Hash algorithms can convert any data into a fixed-length hash value, and any slight alteration of the data will lead to changes in the hash value, thus ensuring the integrity of the data. In the public and private key encryption system, the private key is used to sign the transaction, and the public key is used for verification. Only users with the corresponding private key can initiate valid transactions. HashExchange Key With the help of advanced encryption technology, users' digital assets and transaction information are strictly encrypted and protected to prevent information leakage and malicious tampering, allowing users to conduct digital asset transactions with confidence.
What is HashKey Exchange? HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment. Download link: https://www.hashkey.com/en-US/download Disclaimer: This material is for general information purposes only. It does not constitute, nor should be interpreted as, any form of solicitation, offer or recommendation of any product or service. It does not constitute investment, tax or legal advice. In no event should any news release be considered as recommendation of a particular type of digital asset. This material may include market data prepared by HashKey Exchange or data from third party sources. While HashKey Exchange makes reasonable efforts to ensure the reliability of such third-party information, such information may have not been verified. Graphics are for reference only. We make no representation or warranty, express or implied, to the timeliness, accuracy or completeness of the information in this material. Information may become outdated, including as a result of new plans, regulations or changes in the market. In making investment decisions, investors should not solely rely on the information contained in this material. The risk of loss in trading digital assets can be substantial and is not suitable for all investors. Any forward-looking statements in this material is subject to several conditions, uncertainties and assumptions. We undertake no obligation to update or revise any forward-looking statements. The English version shall prevail if there is any inconsistency between the English and Chinese versions.