A few facts about the blockchain
Recently everybody has been actively discussing the issue of the blockchain. With the rise in the cost of bitcoin, this issue has become even more topical, as the basis of cryptocurrencies is blockchain technology. In this article, we will examine some issues concerning this technology in more detail. You may find even more useful information on newsblockchain.io.
Blockchain and bitcoin
Blockchain technology is well proven on Bitcoins, a popular and expensive cryptocurrency. Its example showed how to organize mass hash calculation (nowadays generally accepted measure of electronic block integrity). It is enough for the creator of the first block to create a unique formula and calculate the “parent” on its basis.
In bitcoins the following rules are applied, which are typical for the whole blockchain:
- Each hash is unique; when calculating the next transaction, another hash is created that is not related in any way to the previous one (one cannot pick up the second one).
- It is impossible to recover the original number from the hash, this excludes hacking by brute force.
- The periodicity of occurrence of a new hash is laid down at the level of a formula, only the creator of a particular system can change it.
- The base of blocks is public and at the same time fully protected from hacking.
- Calculations are performed by users on their home computer or at the expense of special equipment.
- A minor disadvantage of the existing bitcoin system is the visibility of all operations. Every owner of this crypto wallet can see what amount is transferred and where. But it is impossible to find out who is the owner of this or that purse, full anonymity is preserved.
Attitude to blockchain
In various countries, block technology is often discussed at the state level. Somewhere we are talking only about bitcoins and analogues, other states are trying to implement it in banking structures, including international transfers. This issue is not legally resolved everywhere. Thus, there is an opinion that “surrogate money” is used for illegal trade, transfers of “black” incomes.
Such an approach slows down the introduction of technology in many countries. The system is beneficial for the banking structure, it deprives it of any monopoly, control of international transfers in comparison with what is now happening with SWIFT. More than 40 large Western banks have united in a single consortium with the same purpose – to find effective and legal application of this technology.
Prospects of development
Does not allow to ignore the system blockchain tempting list of benefits. The prospects are too bright when the technology is introduced on a global scale. The desire for economic development inevitably leads to the consideration of new directions.
Blockchain allows solving several problems at once:
- Significant reduction of time for financial procedures.
- Reduction of material costs due to the lack of need for powerful servers, expensive data storage complexes.
- Deprivation of the monopoly of large companies trying to manipulate the market at the expense of large capital.
- Optimists predict an exemption from corruption, elimination of monetary fraud and other financial crimes. In their opinion, transparency of the system will force all its users to comply with the law, since any transaction is open. For the state, such prospects become critical due to the lack of a legally regulated scheme of transition to the blockchain technology.
If you want to learn more about this technology, you can visit newsblockchain.io. The news about blockchains is constantly updated here, so you can always find something interesting.