

What is blockchain technology? How does blockchain ensure transaction security? Will it become the core of future finance?
Jul 24, 2025 am 06:48 AMBlockchain is a decentralized distributed ledger technology that can realize secure data exchange and value transfer between multiple parties without relying on third-party intermediaries. With its immutable and traceable characteristics, blockchain is being widely used by more and more financial institutions and technology companies.
- Decentralization: The blockchain is maintained by multiple nodes, without a single controller, reducing the risk of the system being manipulated.
- Immutable: Once a block is generated, it cannot be changed, ensuring that the data is authentic and trustworthy.
- Traceability: All transaction records are permanently retained and any historical data can be traced.
- Consensus mechanism: reach transaction consensus through PoW, PoS and other mechanisms to avoid problems such as double payment.
- Encryption algorithm protects data: SHA-256 and other encryption algorithms are used to encrypt transaction data to ensure security during data transmission.
- Consensus mechanism verification transactions: All transactions must be verified by most nodes across the network to ensure that the transactions are true and valid.
- Multi-node distributed storage: All nodes have complete or partial ledger copies, and the system still operates stably even if some nodes are attacked.
- Automatic execution of smart contracts: transaction rules are written into smart contracts in advance to avoid human intervention and improve trust.
- Ouyi OKX: ——Provide multi-chain asset trading and DeFi services, with a friendly interface and strong liquidity.
- Binance: ———The exchange with the largest number of users in the world, supporting rich currency and multiple security mechanisms.
- Huobi HTX: ———An old platform, supporting diversified functions such as spot, contracts, and pledges.
- Gate.io gate: ——The coin is fast and the project is novel, suitable for middle and high-level users.
- Cross-border payment speeds up and reduces fees: realize payment in seconds through on-chain settlement, bypassing the traditional banking system.
- Asset digitalization: Financial assets such as bonds and stocks can be put on the chain to enhance liquidity and transparency.
- Supply chain finance: Use blockchain transparency to solve information asymmetry problems and improve financing efficiency.
- Identity authentication and risk control: On-chain identity systems can be used for efficient KYC and fraud prevention operations.
- OKX: The cold and hot money bud isolation mechanism is adopted, and there are no major safety accidents in history.
- Binance: Introducing SAFU funds to deal with emergencies and support two-factor identity verification.
- HTX: supports multiple signatures and address whitelists, and the platform responds quickly.
- Gate.io: It has a security audit mechanism and has a high user security rating.
- Newbie users recommend giving priority to well-known platforms such as Binance or OKX, which has a more stable experience and an active community.
- Before investing or participating, be sure to understand the platform rules and project background and pay attention to the security mechanism.
- Blockchain’s role as a financial infrastructure is increasing and will be widely used in core areas such as payment clearing and asset management in the future, and it deserves continuous attention.
The above is the detailed content of What is blockchain technology? How does blockchain ensure transaction security? Will it become the core of future finance?. For more information, please follow other related articles on the PHP Chinese website!

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