45 minutes with blockchain | What is a blockchain?
Internet blockchain technology!
Blockchain is an undeniable clever discovery - the idea of a person or a group of people known as a pseudonym, Satoshi Nakamoto. But since then, it has grown into something bigger, and the main question everyone asks is: What is Blockchain?
By letting digital information be distributed but not copied, blockchain technology creates the backbone of a new kind of internet. Originally designed for the digital currency, Bitcoin, the tech community is now discovering the potential use of other technologies.
Bitcoin has been called "digital gold", and for good reason. To date, the total value of the currency is close to $9 billion US. And blockchains can create other types of digital values. Like the internet (or your car), you do not need to know how blockchain works to use it. However, having a basic knowledge of this new technology shows why it is considered revolutionary. So, we hope you enjoy this, what is the Blockchain guide.
What is Blockchain Technology?
The Bank records all of their financial transactions in a 'ledger' (or 'ledger'). Decades ago, this ledger might have been in the form of hundreds of dusty old books. Each new phrase that appears in the ledger is a record of a recent transaction. These records are now digitized, but the ledger is still owned and controlled by a bank.
Blockchain is unique because this ledger is not managed by a single organization or party. Instead, the general ledger record is publicly distributed and managed by thousands of computers in the world at the same time. This public accessible and public ledger is the main force of Blockchain. Every computer contained in the network can make new notes about new transactions, said Oscar Darmawan, President Director of Bitcoin Indonesia. When a transaction is recorded in this global ledger, it is impossible for anyone to delete the transaction records.
In a perfect sense "Blockchain is an indestructible book of economic transactions that can be programmed to record not only financial transactions but almost everything is worth." Don & Alex Tapscott, author of Blockchain Revolution (2016).
Use Blockchain as Google Docs
"The traditional way to share documents with collaboration is to send Microsoft Word documents to other recipients, and ask them to revise them.The problem with that scenario is you have to wait until you receive a copy of the refund before you can see or make any other changes because you are locked not edit it until someone else does it.
That's how the database works today. Two owners can not mess up the same record at once. That's how banks maintain balance and money transfers; they briefly lock access (or subtract balance) while transferring, then update the other side, then reopen access (or update again). With Google Docs (or Google Sheets), both parties have access to the same document. At the same time, and the single version of the document is always visible to both. It's like a shared booklet, but it's a shared document. The distributed part plays a role when sharing involves a number of people.
Imagine the number of legal documents that should be used like that. Instead of forwarding each other, losing track of the version, and not syncing with other versions, why can not * all * business documents be shared instead of being transferred back and forth? So many types of legal contracts would be ideal for such workflows. You do not need blockchain to share documents, but the shared document analogy is great. "William Mougayar, Venture Advisor, 4x businessman, marketing expert, strategy specialist and blocking specialist.
Blockchain Durability and endurance
Ian Khan, TEDx Speaker "As revolutionary as it is, Blockchain really is a mechanism to get everyone to the highest level of accountability, no more missed transactions, human or machine errors, or even exchanges that are not made with the consent of the parties involved.
Above all else, the most important area in which Blockchain helps is to guarantee the validity of a transaction by recording it not only in the primary register, but a connected distributed register system, all of which are connected via a secure validation mechanism. " Ian Khan, TEDx Speaker | Author | Futurist Technology.
Blockchain technology is like the internet because it has built-in resilience. By storing identical information blocks across its entire network, blockchain can not:
- Controlled by a single entity.
- There is no single point of failure.
Bitcoin was discovered in 2008. Since then, Bitcoin blockchain has operated without significant disruption. (To date, the Bitcoin problem is due to hacking or mismanagement.In other words, this problem stems from bad intentions and human error, not a lack of basic concepts.)
The Internet itself has proven durable for almost 30 years. This is a track record that bodes well for blockchain technology as it continues to grow.
Blockchain revolution in the world!
A blockchain - originally blocking a chain - is a constantly growing list of records, called blocks, that are linked and secured using cryptography. Each block contains usually hash pointers as links to previous blocks, a timestamp and transaction data. By design, blockchains are inherently resistant to data modification.
Functionally, blockchain can serve as an "open and distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent manner." To be used as a distributed ledger, a blockchain is usually managed by a peer-to-peer network which collectively follow the protocol to validate the new block. note, the data in a particular block can not be changed retroactively without changing all subsequent blocks and collusion of the majority of networks.
Blockchains are safe with design and are examples of distributed computing systems with high Byzantine error tolerance. Therefore a decentralized consensus has been achieved with blockchain. This makes blockballs potentially suitable for recording of events, medical records, and other records management activities, such as identity management, transaction processing, documentation of origin, or traceability food.
The first distributed blockchain was conceptualized by Satoshi Nakamoto in 2008 and implemented the following year as a core component of bitcoin digital currency, which serves as a ledger for all transactions. The discovery of blockchain for bitcoin makes it the first digital currency to solve multiple spending problems, without the use of a trusted authority or central server. The bitcoin design has become an inspiration for other applications.
A Brief History of Blockchain
The first work on cryptographically safe block sequences described in 1991 by Stuart Haber and W. Scott Stornetta, in 1992, Bayer, Haber and Stornetta merged the Merkle trees to an increase in efficiency to be able to collect multiple documents into blocks.
The first distributed blockchain was then conceptualized by Satoshi Nakamoto in 2008 and implemented the following year as a core component of bitcoin digital currency, where it serves as a ledger for all transactions. Through the use of peer-to-peer networks and distributed server teams, the blockchain database is managed independently. The use of blockchain for bitcoin makes it the first digital currency to solve multiple shopping problems without the need for a trusted administrator. The bitcoin design has become an inspiration for other applications.
In 2014, "Blockchain 2.0" is a term that refers to a new application of distributed blockchain databases. The Economist describes an implementation of this second generation programmable blockchain that comes with a "programming language that allows users to write sophisticated smart contracts, thus creating self-paying invoices when a shipment arrives or sharing a certificate that automatically sends the owner a dividend if the profit reaches level. "Blockchain 2.0 technology transcends transactions and enables" value exchange without strong intermediaries acting as money and information arbitrators. "
They are expected to allow excluded people to enter the global economy, allowing privacy and people protection to "monetize their own information", and provide the ability to ensure creators are compensated for their intellectual property. Second-generation blockchain technology makes it possible to store "individual persistent digital IDs and personalities" and provide a way to help solve social inequality problems with "[potentially changing] like distributed wealth."
By 2016, Blockchain 2.0 implementations continue to require off-chain oracle to access "external data or events based on time or market conditions [necessary] to interact with the blockchain."
In 2016 also the Russian Federation's securities storage center (NSD) announces a pilot project based on the Nxt Blockchain 2.0 platform that will explore the use of a blockchain-based automated voting system.
Various regulatory bodies in the music industry have begun testing models using blockchain technology for royalty collection and copyright management around the world. IBM opened a blockchain innovation research center in Singapore in July 2016. A working group for the World Economic Forum met in November 2016 to discuss the development of a governance model linked to blockchain. According to Accenture, the application of the diffusion of innovation theory suggests that by 2016 blockchains achieve a 13.5% adoption rate in financial services, therefore reaching the early adopters phase. In 2016, the trade industry group merged to create the Global Blockchain Forum, an initiative of the Digital Chamber of Commerce.
In the early 2017, the Harvard Business Review suggests that blockchain is the basic technology and thus "has the potential to create a new foundation for our economic and social systems." It is further observed that while fundamental innovations can have a huge impact, "It will take several decades for the blockchain to seep into our economic and social infrastructure."
Benefits of Blockchain Technology
A. High quality data
Blockchain data is complete, consistent, timely, accurate, and widely available.
B. The users are authorized
Its users are in control of all their information and transactions.
Two parties may conduct unauthorized or third party intermediary exchanges, greatly reducing or even eliminating the risk of counterparties (third parties or participants, whether banks or customers, with whom financial transactions are made, or parties engaging in financial transactions).
D. Faster transactions
Interbank transactions can potentially take up to several days for final clearing and settlement, especially outside working hours. But the Blockchain transaction can reduce transaction time in minutes and processed for 24/7.
E. Lower transaction costs
By eliminating third-party intermediaries and overheads to exchange assets, blockchain has the potential to reduce transaction costs.
F. Easing the ecosystem
With all transactions added to the common Ledger single / single public ledger, it reduces the clutter and complications of some ledger books.
G. Durability, reliability, and longevity
Due to decentralized networks, blockchain has no central point of failure and is better able to withstand any malicious attacks.
H. Process with integrity
Users can trust that transactions will be executed exactly the same as protocol commands and eliminate the need for third parties.
I. Transparent and immutability
Changes to public blockchains can be viewed openly by all those who create transparency, and all transactions are irreversible, meaning they can not be changed or deleted.
The conclusion that can be quoted from this writing is!
"Blockchain makes payment transactions possible and recorded without using a ledger managed by a bank. Initially, this is important for Bitcoin (the first currency in circulation using the technology), but now the ledger technology is beginning to be used and applied to anything.
I even recorded his wedding day in Blockchain's big book by putting his marriage promise into the many transactions that took place in the technology, to show that their promise will be forever recorded in the a digital ledger that can not be changed by anyone
And also As written by a famous capitalist venture named | Marc Andreessen: "For the first time, Blockchain gives an Internet user the opportunity to send a unique digital property to other internet users. The transaction can be guaranteed safe, and everyone can know that a transaction has taken place and no one can resist the fact. "|
So, as the times progress and then, a technological revolution has changed the activity of the people of the world in certain ways. I can not imagine how the technology changes over the next 4 years.