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Blockchain Technology

2018-02-19 03:48 pm | Resource: Crypto Section | No Views : 2402

Blockchain Technology The digital currency is based on the blockchain, but what technology will change the way banks and the financial sector around the world? In this lesson we will explain in detail this technology that has become the dominant mind of most investors in the world, Objectives, negatives and positive, and ideas in the development of the world.

What is the technology of blockchain?

Blockchain is a technology for storing, validating and licensing digital transactions on the Internet, while providing high security and encryption, which means that it is difficult to break it with the technologies now available, which will evolve in the future.
The blockchain is based on the idea of ​​allowing the distribution of digital information without copying it. It was created for a new type of Internet. The technology was originally developed for Bitcoin, but society now sees many other possibilities for this technology.
The technology can be likened to the digital record on which transactions are recorded, which can record not only electronic transactions, but almost everything in life, because it is non-counterfeit because it exists on a distributed database.
Many researchers and experts confirm that the technology will be the gateway to a world of innovation in the Internet, changing business methods, traditional business management depends on centralization most often and the inevitability of a third party in any transaction that authorizes the transaction or ensure the occurrence of, In this case, the bank acts as the third party in the transaction to ensure that it occurs and the transfer of funds from the sender to the consignee, but with the proxies it will not need a third party. The principle of peer-to-peer means that there is no need for a presence I Third, the money is transferred automatically from the buyer to the seller, we will not need banks or any intermediary, because of the decentralization of the Blockchain.

Blockchain Database

Blockchain technology
Think that there are repeated data thousands or millions of times across a network of computers, and then imagine that this network is designed to update these data regularly at the same time. The information on the blockchain exists as a shared database - and consistently compatible.
This means that the records kept are truly public and easily verifiable, and there is no centralized version of this information that enables hackers and corrupt individuals to access them. , Because this information is hosted by millions of computers at one time, in addition to being accessible to anyone on the Internet.

Characteristics of blockchain

There are many characteristics of this technology, including:
  • Do not need a central or third party presence in transactions.
  • No one agrees or rejects transactions.
  • The power of the system in its encryption and centrality.

Durability and persistence in the blockchain

Blockchain technology is similar to the Internet in that it has high durability and security, by storing blocks of identical information across its network, but the blockchain can not be controlled by any particular entity and does not have a certain failure point because it is distributed on a large network Affect processes greatly.

Transparent and non-forgery

One of the most important features of the blockchain, is the transparency, scrutiny and compatibility of all transactions that occur during short periods of time, and each of these transactions are seen as blocks, so this technology has important characteristics, including:
  • By definition, transparency data is included within the network as a whole.
  • Can not be falsified. A change to any unit of information on a blockchain means the use of a huge amount of computing power to bypass the entire network.
In theory, this can be possible, but in practice, it is unlikely to happen. Control of the system in order to take Bitcoin, for example, would also have an impact on the destruction of its value.
When I talk about it in the West, people say they trust Google, Facebook, or their banks, but the rest of the world does not trust organizations and companies to that extent, referring to Africa, India and Eastern Europe, "said Vitalek Putrein, the inventor of ethereum. Russia is not tied to places where people are really rich. The chances of the blockchain are the highest in countries that have not reached this level yet.

Decentralization of blockchain

We have also mentioned that decentralization is one of the most important features of the Blockchain technology. With this advantage, stock market transactions are not necessary, as are traditional aspects of trade, because they are done by a third party, but with the blockchain and the principle of peer-to-peer you will not need to. An example is until this point is understood:
You are a small investor and you want to trade in any currency, commodity or stock, you will naturally look for a company from a brokerage company to put money with him to invest in it, so we have to 3 parties are the investor, the investor, the brokerage company is the third party, In canceling it, no one will control your own money, just the one you manage. This property is a form of public cooperation that makes you understand a lot about what is going on around you, whether in banking, securities or anything.

Who will use the buccaneers?

An illustration of the blockchain process in financial transactions
Currently, funding provides the strongest use cases for this technology, such as international transfers, for example. The World Bank estimates that more than $ 430 billion in remittances was sent in 2015. Currently, there is a surge in demand for the blockchain developers. As it is likely that the blockchain will interrupt the intermediary of these types of transactions. Personal computing has become available to the general public with the invention of a graphical user interface (GUI), taken in the form of a "desktop". Similarly, the most common graphical user interface that is developed for the blockchain is the so-called "wallet" applications, used by people to buy things using Bitcoin, and store them along with other digital currencies. Since online transactions are closely related to identity verification processes. It is easy to imagine that portfolio applications will turn out in the coming years to include other types of identity management.

Blockchain And strengthen security

By storing data across the blockchain network, the blockchain in turn eliminates the risks that come with centrally held data. The network lacks the central vulnerabilities that can be exploited by hackers. At the moment, the Internet is facing common security problems for everyone, and we all rely on the "username / password" system to protect our identity and our online assets. But it looks different in the blockbuster network, so security methods are used based on encryption technology.
The key to this is the so-called "public and private keys", where the "public key" (long string, randomly generated from numbers) is the address of users on the blockbuster, and the network is registered as belonging to that address, while "private key "Is like a password that gives its owner access to Bitcoin or other digital assets. Where your data can be stored on the plaque without being counterfeit. But, although protecting your digital assets you will also need to keep your key by printing it and creating what is referred to as a paper wallet.

Protection of intellectual property

With the development of technology, especially the Internet and its spread on a very large scale, it gave the right to web users to free content, so the copyright holders were not lucky. They lost control of their intellectual property, making them suffer from a lack of money, , It is possible to protect copyright and automate the sale of creative works on the Internet, eliminating the risk of copying and redistributing files.

Identity Management

Blockchain technology
The ability to verify your identity is the focal point for financial transactions occurring over the Internet. The means of exposure to the security risks that come with online trading are at best. Therefore, the development of digital identity standards proves to be a complex process, Online Identity Solutions Collaboration between private entities and government.

Uses of blockchain

Blockchain technology
  • Financial transactions, as in stocks, remittances, e-currencies and specifically Bitcoin.
  • Supply chain, this technology has the potential to retain product information such as product history, shipment, origin, and product information in a safe, reliable and encrypted manner to prevent tampering.
  • Such as facilitating the issuance of driver's licenses, marriage certificates, password-keeping, and property management.

What hinders the application of blockchain?

  • Most people and workers in technical and service organizations do not know what the technique is, and if they know it, they know it as simple and free of detail as well as their knowledge of the currency of the Bitcoin, or some other digital currency.
  • The novelty of this technique, which needs time to mature and vary their applications.
  • Data management in a decentralized environment and the fear of the governments of the world from this point, so some governments are trying to control this at the present time, so as not to cause future problems.
  • There are no international standards and standards for this technique.
  • The legislator is not accepted because of its radical change in procedures, laws and policies.
  • Resistance to change.

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