Blockchain - technology behind a number of digital currencies like Libra, Bitcoin. Blockchain helps maintain current electronic currencies,...
Blockchain - technology behind a number of digital currencies like Libra, Bitcoin. Blockchain helps maintain current electronic currencies, but its application does not stop here.
Facebook recently officially introduced its Libra digital currency. The announcement from the social networking giant has stirred interest in the field of money which is no longer significant since the currency of bitcoin reached nearly $ 20,000 per dong by the end of 2017.
While bitcoin fever has made many people become billionaires, Facebook hopes Libra will bring a simple and low-cost approach to financial services to more than 1.7 billion people worldwide. no bank account yet.
Although the practical application may vary, behind all coded coins, including bitcoin and Libra, is a technology called blockchain.
Analysts at UBS estimate that blockchain could become an industry worth between $ 300 billion and $ 400 billion by 2027. What is clear is the fact that even though bitcoin fever has ended like However, blockchain technology will continue to grow.
This is what you need to know about blockchain, the technology is expected to break what the world is thinking about contracts, finance, forwarding and many other industries.
Blockchain is the electronic ledger
Simply put, the blockchain is an electronic ledger. Each unit of this ledger is a "block" and these blocks are interconnected in the order as soon as they are created through encryption and cannot be edited.
Inside each block is the complete history of all that happened on the chain as well as rules and rules that information blocks must follow.
Think of blockchain as a playlist
(Photo: Fortune)
Imagine that users are creating a music playlist on Spotify. Each time a song is added, the user creates a new version of the playlist, or a new "block" on the string. The new block contains information about newly added tracks and all previous tracks.
If someone wants to add a music track to the playlist, this person will create a new block in the string. If that block is approved by all participants, it will be added to the string and become a new version of the playlist.
In case there is a person who wants to delete a song from the list. The next version of the playlist will be accompanied by a note that the music has been on the list but has been deleted.
Blockchain is most useful when it comes to a highly reliable storage system
(Photo: NYU)
Blockchain technology maximizes the effect in two cases: storing event information and ensuring that this information is never deleted.
This feature makes blockchain very useful in situations where both parties want to make an agreement but do not trust each other.
Blockchain can replace financial institutions, banks or law firms
Banks and law offices are developed to handle transactions related to money and assets. However, many of these transactions can be done through blockchain applications such as smart contracts.
A smart contract using simple understandings is a thing that can only happen when another thing is done.
For example, Party A leases an apartment, the smart contract requires Party B to transfer USD 1,000 to Party A in exchange for the opening code. Blockchain eliminates the risk of having a fraudulent intermediary unit.
Bitcoin, the first blockchain structure, was created in 2009.
A Japanese man named Dorian Prentice Satoshi Nakamoto was mistaken for the "father" of bitcoin in 2014. (Photo: Reuters)
Bitcoin is the first blockchain system created. bitcoin was born in 2009 with a set of rules listed in the white paper written by a mysterious figure named Satoshi Nakamoto whose identity has not been determined yet.
The original idea of this currency is to create an electronic form of peer-to-peer cash that cannot be passed through banks - this goal was conceived from the 2007-2008 banking crisis.
"Distributed, blockchain" system, so no single unit has control.
Hackers cannot occupy a single computer to attack the blockchain because the system does not have a central server. Meanwhile, in the bank model, there is always a central database containing information or a central fund to contain money.
It also protects users from having to rely too much on financial institutions such as banks.
All changes on the blockchain need to be approved by the entire network.
One of the reasons blocks in the chain is so hard to edit is that blockchain exists on a distributed network of computers that is responsible for confirming any changes that occur on the system.
This process is called "consensus" and is considered to be the key to the security of the blockchain.
The downside of the blockchain is that it's still quite slow
Every application built on the blockchain process must handle the entire history of the blockchain every time a change is made. This means that trading on blockchain is quite slow when compared to normal computer speed.
For example, in the case of bitcoin, the currency can only handle 7 transactions per second while Etherium can handle clause 13. For Visa, at the time of 2014, the company had Can handle 56,000 transactions per second.
When something needs to be edited, this process requires a "fork".
Fork is the term used when a string is split into two. Fork is used in the blockchain when there is a change in rules or a block of information needs to be removed.
However, with the characteristic of a distributed system, every change needs to be confirmed by each computer, so "Fork" is not easy to achieve.
Two of the most popular blockchain at the moment are Ethereum and Hyperledger Fabric
Anyone who knows the techniques can create blockchian. But many companies choose to develop based on the available blockchain platforms because their technology has been tested and proven over time. Two of the most popular platforms are being used by many large companies, Ethereum and Hyperledger Fabric.
IBM is using blockchain to monitor food worldwide with the aim of improving safety.
(Photo: Getty Images)
IBM has a number of blockchain projects in progress, including food tracking systems from farms to stores. The company also partnered with financial technology startups Stellar.org and KlickEx Group in 2017 to apply blockchain in the use of cross-border financial transactions and money transfers.
Oracle also introduced a blockchian product in 2018 that gives users the tools to build smart, smart or follow-up contracts. This is one of the biggest blockchain projects at the moment with the ability to help companies benefit from blockchain without directly dealing with complex technical issues.
Mr. Nerd
