CRYPTOCURRENCY CHAIN IDs AND THEIR IMPORTANCE

Hello to everyone in this wonderful community today and on this great platform at large. I greet you all in good spirit and I want to believe that you all are doing just fine today and if so, we give God praise for the sustainability of life and sound health.

Today, I welcome you all to yet another wonderful week before us all this period. I want to believe that we all had a great weekend with family and friends and equally had enough rest.

I am here amidst you all today again to share some ideas regarding the digital currency. I am here again with an exciting topic to share with you all today and I have tagged today's teaching to be CRYPTOCURRENCY CHAIN IDs AND THEIR IMPORTANCE.

It is going to be an interesting discussion and as such I urge you all to sit tight and relax while I do justice to the said topic. I wish you all a happy reading!

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The digital currency just as we all know is not a physical item to behold unlike the fiat currency that we can feel and touch with our bare hands. We send fiat or commercial currencies to individuals through their commercial bank account.

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This bank account is being assigned to a particular user and every one has a unique bank account where money can be transferred to. In the same manner does the digital currency operates and the only difference is that, the digital currency operates online mostly.

The digital currency operates on a decentralised system and as such, to send or transfer digital assets to another individual, there need to be a chain Id for the transaction to be completed. Now this brings us to the topic for the day.

WHAT IS CHAIN ID

Chain ID is said to be a unique instrument or it can be said to be an identifier that is being put to use in the cryptocurrency blockchain networks in other to differentiate among certain digital asset chains found in the same ecosystem.

The chain ID is indeed an identifier that reveals the difference in digital assets blockchain networks. This chain ID indicates or identifies the blockchain network regarding the digital assets of the same ecosystem.

IMPORTANCE OF CHAIN ID

The chain ID is very essential as it is used to identify the specific Blockchain network within a particular ecosystem. This eliminate confusion and avoid mistakes in performing transactions between certain blockchain networks. The chain ID helps to ensure that unnecessary mistake or accidentally transactions are greatly avoided when transferring digital assets.

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It ensure that all digital assets are sent or transferred to the specific blockchain that is expected. It enables the detection of the main route as well as the destination of any given transaction that is related to.

In performing a transfer transaction regarding a digital assets, it is essential that you are sending the particular asset to the correct chain ID for the purpose of tracing the said transaction peradventure it did not go through.

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CONCLUSION

Just as I have explained earlier, the financial institution like the bank make use of bank account where we get to see users transfering and receiving funds from other users via the bank account.

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In the same manner does the digital currency operates but the only difference is that, the digital currency has several network chains through which a user can transfer digital currency to other users between different network found in the same ecosystem.

As such, it is expected that when sending a digital currency, a user should cross-check in other to select the appropriate network chain needed before sending the digital assets to avoid confusion and unintended accidental transactions.

Thank you all for reading from me. I will see you all next time.