Bitcoin - subtle technology that transforms the world

The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.

Truly transformative technologies have been dated since the early days of civilization when plant and animal species were cultivated. Suddenly, a man had more sense in cultivating than hunting and gathering fruits. The increase in production meant that people could focus on other things, rather than worry about survival. They could start living in cities. Human civilization has begun.

The story of the new millennium involved some 30-odd technologies for general purposes, which were of equal power. This has led to the transformation of economy and life in general, but also to the transformation of the entire civilization. Today, we are living through some other technology.

Digitization is one of the most powerful technologies. No area of human activity will be omitted when translating physical data into digital. There are already surprisingly large capacities such as, for example, various generations of smartphones or tablets. However, the adventure is just starting.

Because you are locked out of editing it until the other person is done with it. That’s how databases work today. Two owners can’t be messing with the same record at once.

By enabling the distribution of digital information, but not copying them, so-called. blockchain technology has created the backbone of a new type of Internet. Originally designed for the digital currency, the battleground now finds other potential benefits in modern society.

Bitcoin is for good reason called "digital gold". The total value of this currency, to date, is around nine billion US dollars, and blockchain technology can make other types of digital currencies. You do not need to know how it works to use it, just like you do not have to know how the Internet works. However, the fundamentals of knowing this new technology show why it is revolutionary.

A basic understanding of this technology can be presented in the following way. If you are thinking of a tabular view that doubles thousands of times over a computer network, and assuming that this network is designed to regularly update this table, you will have a basic understanding of the blockchain.

“As revolutionary as it sounds, Blockchain truly is a mechanism to bring everyone to the highest degree of accountability. No more missed transactions, human or machine errors, or even an exchange that was not done with the consent of the parties involved. Above anything else, the most critical area where Blockchain helps is to guarantee the validity of a transaction by recording it not only on the main register but a connected distributed system of registers, all of which are connected through a secure validation mechanism.”

Information stored in the block database exists as a common database and as a continuously coordinated database. This is a way to use a network that has obvious advantages, or rather. A blockchain database is not stored in any location, which means that the records contained in the public are easily verified.

No centralized version of this information is available for hackers in order to corrupt it. At the same time, it is hosted with millions of computers so that information is available to everyone on the Internet.

The durability of Blockchain technology

The Block Block technology is like the Internet, that is, by storing information blocks that are identical outside their network, Blockchain cannot:

- To be controlled by any entity.
- There is no possibility of failure.

Bitcoin has been in existence since 2008 and since then it has been operating without significant disturbances. To date, any problem that arises is associated with poor technology management or hacking. In other words, these problems stem from the bad intent and human error, not because of the fault in the basic concepts of the technology itself.

Transparency and non-corruption

The block network base lives in a state of consensus, that is, it is automatically checked every 10 minutes. It is a kind of self-regulatory ecosystem of digital value. The network seeks to balance every transaction that takes place at ten-minute intervals. Each group of these transactions is called the so-called. block.

From this, two important characteristics arise:

- Transparency data embedded within the network as a whole, by definition, are public.
- Data cannot be damaged by changing any unit information on a block basis. This would practically mean the use of a huge amount of computing power to crash the entire network.

In theory, this would be possible. In practice, it is unlikely that this will happen. Taking control of the battlefield system could also destroy their value.

“Bitcoin has the same character a fax machine had. A single fax machine is a doorstop. The world where everyone has a fax machine is an immensely valuable thing.

Network Nodes

The network of the so-called. Computer "nodes" makes a blockchain or block base. A computer that is connected to the network of the block database receives a copy of the blockchain that is automatically downloaded after accessing the network of the block database.

Together they create a powerful network of so-called. second level. It`s a completely different vision of how the internet can work. Each node is a block administrator and voluntarily joins the network (in this sense, the network is decentralized). However, each has its own importance for participation in the network.

The idea of decentralization

By its design, block base is a decentralized technology. Everything that happens within it is in function of networks as a whole. By creating a new way of transactions, some traditional aspects could become unnecessary.

The global network of computers uses a blockchain technology to jointly manage a database that records Bitcoin transactions. This means that Bitcoin manages the network, not just one central authority. Decentralization means that the network operates on the basis of the "user-to-user" system.

“I think decentralized networks will be the next huge wave in technology.”

Who will use blockchain technology?!

You do not have to know the structure of this technology to make it useful in your life. Online identity, as well as built reputation, will also be decentralized. We will have the information that belongs to us. By storing information over your network, blockchain eliminates the risks that occur when data is stored centrally.

With block base technology, the internet gets a new level of functionality. With the safety of the blockchain, the new era on the road is to root out traditional financial institutions. Blockchain allows Internet users the ability to create the value and authenticity of digital information. The question is, what will in practice be the results of these new business applications?



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