- Advertisement -

Cryptocurrency

Blockchain: Everything you Wanted to Learn But Were Too Confused to Ask

Every day, blockchain is a topic that we hear about. This is especially true in the context cryptocurrency. Many “usual” currency transactions overseas have been made impossible due to the blocking of Russian cards. Let’s take a deeper dive into the world virtual money before we get too deep.

What is blockchain?

Blockchain technology is a database that cannot be altered, forged or erased. A database that is not a traditional one has an owner. This could be a person or company with the technical capability to modify or delete data. In order to ensure their good faith, customers of such databases are required to use the services provided by the owner company.

There is also the possibility of hackers attacking the database, which could result in data loss. Two properties of blockchain exclude both these scenarios. It is decentralization and encryption. Data is distributed physically among many servers, participants in the network. Cryptography ensures mathematical integrity. Data cannot be altered imperceptibly without consenting to the majority of participants.

Blockchain: How it Works

The blockchain data structure is not like an Excel table, as many databases. It is instead a long journal that records every change to the end of the blockchain. Past records cannot be changed, and records that conflict with existing records can’t be added to them. This is possible through cryptography.

Blockchain and Bitcoin: What’s the Difference?

Financial transactions can be made easier by the guaranteed reliability of the blockchain information.

A decentralized electronic payment system is one example of one of the most obvious applications. Bitcoin is the most well-known and widely used blockchain-based payment system. It is the currency with the same name that is used as the unit of account.

It was created 13 years ago. It remained inaccessible to the rest of the world until 2017.

According to developers, there is a limited amount of Bitcoin currency. Therefore, an increase in users of the system leads to a higher demand for the currency, which, in turn, leads to an increase of its price. The price of cryptocurrency rose from $ 400 in 2016 to $ 20,000 by 2017.

Bitcoin was thus not only used for its immediate purpose, which is to conduct decentralized financial settlements, but also became an investment and speculative instrument, similar to company shares or precious metals.

It is interesting to note that Satoshi Nakamoto was the only person who spoke publicly under his pseudonym. No one knew who was behind him. The network began functioning independently and decentralized after it was launched. However, Satoshi Nakamoto, the user, suddenly stopped expressing himself in any way. He has not been seen on the network in more than 12 years. It remains to be determined if he was one individual or a group of people.

Other blockchains go beyond the payment system. They can solve general problems, such as ensuring business relationships and keeping records of contracts and agreements between business partners. There are many blockchains, but the most widely used are Solana, Polkadot, and Ethereum. Among the latest is TON – a Blockchain developed by Russian scientist Nikolai Durov in collaboration with the Telegram team.

By the way: Recently, in our telegram channel The Innovations we discussed environmentally-friendly mining in one American state.

Blockchain technology used

Blockchain-based projects are still not widely popular despite the advancement of technology. Its primary application is still to create cryptocurrencies. Many of these cryptocurrencies are used more for investment than payment.

There are many attempts to bring blockchain into production and entertainment (for example, games on computers) as well as into the art field. NFT technology, which allows you to record the ownership of something (e.g. a virtual piece of art) has been popularized relatively recently.

- Advertisement -

Next Post