GIP Token is based on the ERC 20 standard of the Ethereum Blockchain. It inherits three basic features of the Ethereum blockchain i.e Transparency, Fluidity and Scalability. All records are maintained in the form of a decentralized ledger on the Ethereum network. All nodes or users part of the GIP Network maintain an immutable copy of the ledger.
However, there are other layers of GIP token which deserve a brief explanation. In this blog, we explore and analyze the complex functions and procedures involved in a GIP Token Transaction.
Getting one’s head around a Blockchain transaction can be confusing but this blog tries to keep the technicalities at bay as much as possible. We hope by the time you end up reading this blog you would better understand How The GIP Token Transaction Works.
The first and the foremost step is initiating the transaction. GIP makes sure that the process is as simple as it gets. The user only needs to tap on the ‘Push’ button on the GIP Platform or GIP Wallet for this. Once this is done by the sender/receiver, the token transfer process starts.
The blockchain is a peer to peer network. This means that the initiation/transaction requests are sent to all participants on the GIP Network. The broadcast of transaction requests is paramount for public ledger creation.
Validation is paramount in all Blockchain related transactions. Validation rules are unique in nature. Each participant node on the GIP P2P Blockchain Network validates this request based on the pre-defined validation rules. They are predefined algorithms set by the GIP Token developers.
Ledgers are nothing but public credit-debit records. If the transaction request is validated by all participants, the transaction is stored in the form of a block. This block contains the following important information that constitutes the block :
- The details of the sender.
- The details of the receiver.
- Transaction details.
The Block is now secured with a hash code i.e a cryptic function. The block is now locked.
The Block sealed with a lock i.e hashcode is not yet part of the GIP Blockchain. The lock on the block is validated by other authorized systems on the GIP Network. Some call these computer systems as miners. Once validated the new GIP Block is added to the GIP Blockchain.
Post lock confirmation and block addition, the transaction is complete. It is immutable and becomes a permanent part of the public ledger.
The GIP Token Transaction is no more than a six-step procedure. But users only need to tap on a single button and the other things play out by themselves. We hope that this blog clears any pre-existing confusion about how the GIP Token Transaction Works.