What is Blockchain Technology?

What is Blockchain Technology?

The blockchain is a chain of blocks, and the public digitized book of all transactions with cryptocurrencies is more specific. A chain in which “complete” blocks (the latest transactions) register and added to it in a chronological order. It in turn allows all participants of the market to monitor transactions with digital currency. Each node (the computer connected to network) receives the copy which is loaded automatically. All participants see all transactions therefore record can’t be counterfeited, or to change.

What is the block and who such hash

The block is a part the Blockchain in which to be brought an inoformation about the last processed transactions. After completion the block passes into a block chain as the fixed database. Directly when closing the block, new is created. In a blockchain there is a huge number of such blocks connected with each other in the correct linearity and a chronological order. Each block contains a hash of the previous block and a hash of all transactions. A hash – a unique key which is generated for each transaction (introduction of data about transactions or record of the new block). The blockchain has the complete information about these users and their balances.

What is a safety of this system

The blockchain was designed so that transactions were invariable, it at the same time means that they can’t be removed and all this system is decentralized. Blocks are added by means of cryptography (enciphering), guaranteeing and providing impossibility of intervention. Data can be distributed, but aren’t copied. The authenticity of record can be verified by all community, using a block chain. If suddenly someone decides to change information in one of blocks it will entail change of all subsequent chain that will be instantly noticed by all users.

Blockchain and Bitcoin

This method was originally developed for accounting of virtual currency bitcoin. Now the technology is generally used for check of transactions in digital currencies.
The blockchain is, perhaps, the main technological innovation of Bitcoin. The bitcoin isn’t regulated by the central body. Instead its users process and check data on transactions independently. Complete transactions publicly registers in blocks and, eventually, in a blockchain where they are checked and relayed by other users of Bitcoin. On average, the new block is added to a block chain each 10 minutes, through a mining.
Now it is possible to apply this system and in other spheres because it is possible to digitize, cipher and insert into a block chain practically any document.

Possible scopes of application

For an example we will take regular banking activity. A blockchain it is similar to complete history of transactions of financial institution, and each block is similar to the separate bank statement. As the blockchain is the distributed system of databases which serves as open electronic enrollment, it can simplify business activities for both parties. On above to the given reasons the technology attracts not only financial institutions and stock exchanges, but also many other spheres. Lawyers also assumed that such system of “e-books” can be applicable with advantage to the systems of vote, registration of weapon or vehicles by the governments of states, medical documentation.
Considering potential, with technology expensive and inefficient accounting and payment networks of the financial industry already began to replace a blockchain. Use a blockchain can provide generous economy of means, allowing the systems of gateway calculations to process transactions, transfers and other transactions much quicker. The recent report of analysts showed that such implementations can save to operators of the stock market up to 6 billion dollars a year.
Despite obvious pluses some consider constantly growing size of a chain of blocks and as a problem which bears difficulties of storage and synchronization.

The first transaction in a blockchain

By the first cross-border transaction it was carried out on October 24, 2016. The broker bank of Australia and Wells Fargo & Co concluded the bargain worth 35 000 US dollars with the Australian dealer of Brighann Cotton Marketing cotton who purchased 88 bales from cotton of the USA in Texas and sent it to Qingdao, China.

Capacity of system

Considering an improbable capability of decentralization and a reliable security system, the blockchain technology promotes creation of the new entities and transactions which are open and safe. Demand for the services based on system a blockchain constantly grows, in connection with outstanding performance and transparency of work. and the technology ripens and develops impressively in high gear.

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