Blockchain technology is often repeated in recent times. This technology and its applications attracted the interest of many major corporations to major governments, especially in the financial fields. As many experts see, this technology has a brilliant future, and it will also have a broad resonance that is comparable to what happened when the Internet first appeared. Hence, we believe that it is important to familiarize people with this nascent technology and to understand it to the fullest, and this is the complete guide.
Is blockchain technology the new Internet?
blockchain is an undeniable revolutionary invention that is the brainchild of a person or group of people known as a pseudonym, Satoshi Nakamoto. Since then, however, this technology has evolved into something bigger. The main question in everyone's mind is: What is the blockchain ?
blockchain is based on the idea of allowing the distribution of digital information without copying it, but the technology of plaque has created the backbone of a new type of Internet. The technology was originally developed for a digital currency, bitcoin , but now the technology community has other potential possibilities for the technology. Returning to bitcoin , he was called "digital gold", for a very good reason. So far, the total value of this currency is approximately US $ 100 billion. Other networks of buccaneers can make other kinds of digital value - which will be explained later -, so having a basic knowledge of this new technology shows why it is revolutionary.
What is plucin technology?
"blockchain is a digital notebook that records transactions on it and can be programmed to record not only financial transactions but almost everything has a value and the advantage of this book is that it is not counterfeit because it is located on a distributed database and will be explained at the next point"
4Distributed database
Consider 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 is present as a common database - and consistently consistent. This method has obvious benefits for using the network. Where the blockchain database is not stored in one place, meaning that records that are kept are really public and easily verifiable. Nor is there a centralized version of this information that enables hackers and corrupt people to access it. This is because this information is hosted by millions of computers at once, in addition to being accessible to anyone on the Internet. To get even deeper into the analog Google spreadsheet, I'd like you to read this piece by a specialist in the blockbuster, William Mogier, Venturer consultant, organizer, marketer, strategist and specialist in the blockchain .
Such as Google Docs
"The traditional way to share documents in a participatory way is to send a Microsoft Word document to another recipient, where we ask them to review it and return us, but the problem with this scenario is that you need to wait until you receive the copy again before you can see or make changes Others, because you are blocked from editing until the other person finishes doing so. This is how databases work today, as owners can not make adjustments to the same record at the same time. But with Google Docs (or Google Sheets), both parties can access the same document at the same time, so that the only copy of that document is always visible to both. It is a joint account book, or joint document. The role of the distributed part comes when several people can participate at the same time.
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 in the event that some devices will not affect On operations significantly.
bitcoin under the umbrella of the blockchain
Bitcoin was invented in 2008. It is the first real application of the blockchain technology and since then, Blockchain has worked with Bitcoin without any major interruption. (Until now, the problems associated with bitcoin were due to hacking or mismanagement of the user's wallets, in other words, these problems come from misuse or human error, not defects in the blockchain ). The Internet itself has proven to be continuous for nearly 30 years. It is a proven track record of good blockchain technology and is still being developed.
Transparency and non-forgery
The network of cocaine is in a state of consensus. There is a kind of self-checking system for numerical value, and there is also compatibility and auditing for all transactions that occur every ten minutes. Each of these transactions is referred to as a "mass". Thus, there are two important characteristics as a result:
By definition, transparency data is included within the network as a whole.
Can not be falsified. A change to any unit of information on the blockchain means using 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 to take the Bitcoin, for example, would also have an impact on the destruction of its value. Vitalek Butrin, the inventor of etherium, said:"Blocking the problem of manipulation. 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 - that is, Africa, India, Eastern Europe and Russia. It's not tied to places where people are really rich. The chances of blockchain are the highest in countries that have not reached this level yet. "
Network of nodes
The network is formed from a network of so-called "nodes" computerized. A node is a PC connected to a blockbuster network using a client that performs the task of validating and migrating transactions, and obtains a copy of blockchain , which is automatically loaded when joining the blockchain network. Together, this contract creates a powerful network of the second level of the network, and a completely different vision of how the Internet can work. Each node is an "official" in the blockchain , and we join the network voluntarily (in this sense the decentralized network). However, each one has an incentive to participate in the network through the opportunity to win the bitcoin .
It is said that the contract is for the "mining" bitcoin, but this term is something of a misnomer. In fact, everyone competes to win the bitcoin by solving mathematical puzzles. bitcoin was the cause of the existence of the buccaneer as originally conceived. But it is now recognized that it is only the first many potential applications of technology. There are an estimated 1,000 petit-like coins (tradable currencies) already available. Further, a range of other possible modifications to the original Biloxin concept are currently active, or are under development. As Larry Summers, former US Treasury secretary, said:
"bitcoin has the same advantage as the previous fax machine. One fax machine was the gateway, and the world with a fax machine was very precious. "
The idea of decentralization
The blockchain has been designed to be a decentralized technology. Anything that happens on it is a function of the network as a whole, and stems from some important implications. By finding a new way of verifying transactions, traditional trade aspects could become unnecessary. Stock market transactions become almost synchronic to Plockin, for example - or record-keeping types, such as the Land Register, can become fully publicized. Decentralization has already become a reality. There is a global network of computers using blockchain to manage the common database that records the transactions of the bitcoin. Thus, the bitcoin is run through its own network, and there is no central authority in it. Which means that decentralization is a user-based (or peer-to-peer) network. The forms of public cooperation that make this possible are just beginning to be investigated. Melanie Swan, author of the book The blockchain : A Plan for a New Economy (2015):
"I think decentralized networks will be the next big wave of technology. "
Who will use the blockchain ?
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 cash transfers was sent in 2015. At present there is an increase in demand for the balkin developers. As it is likely that the plucchin 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.
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 blockchain network, so security methods are used based on encryption technology.
The basis for this is the so-called "public and private keys". The "public key" (a long string, randomly generated from numbers) is the address of users on the blockbuster. The bitcoin sent over the network is registered as belonging to that address. While the "private key" is like a password that gives the 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.
A second level network
With blockchain , the web will gain a new layer of functionality. So that users can deal directly with each other - bitcoin transactions in 2016 averaged over $ 200,000 per day. With the added security features brought about by the proxies, new online businesses are on the right track to replace traditional financial institutions. As Goldman Sachs believes, blockchain technology has great potential, especially for improved clearance and adjustments, and could represent a world saving of up to $ 6 billion a year.
Will it be the new Web blockchain 3.0?
blockchain gives Internet users the ability to create value and validate digital information. What new business applications will result?
Smart Contracts
The books of distributed accounts allow for the programming of simple contracts that will be implemented when certain conditions are met. Lithium is the Open Source blockchain project that was built specifically for this possibility. However, in the early stages, etherium will have the potential to benefit from the benefits of blockchain on the scale of global change. At the current technology level of development, it can be programmed smart contracts to perform simple functions. For example, a payment can be made when the financial instrument meets a certain standard, using the technology of blockchain and bitcoin, which allows automatic payment.
Common Economy
With companies such as Uber and AirBnB increasing their prosperity, this already proves the success of the common economy. But now, with the desire of users to serve the deployed passenger must be relying on a medium such as Uber. By enabling peer-to-peer payments, the buccaneer opens the door to direct interaction between the parties. An example is OpenBazaar, which uses a blockchain to create a peer-to-peer site for eBay. When you upload the application to your computer, you can handle OpenBazaar vendors without paying transaction fees. While the lack of protocol rules means that personal reputation will be more important for business interactions than it is currently on eBay.
Group Finance
Collective finance initiatives such as Kickstarter and Gofundme do advance work for emerging economies based on peer-to-peer. The popularity of these sites indicates that people want to have a direct view of product development. Therefore, the blockchain took this attention to the next level, and is likely to create venture capital funds with collective resources.
In 2016, one of these experiments, based on etherium, the DAO (Organization for Decentralized Autonomy), raised an astounding $ 200 million in just two months. The participants bought the Dow currency, allowing them to vote on smart investments in the venture capital of the contracts (voting power was proportional to the number of Dow currencies they own). Subsequent operations of project funds also proved that the project had begun without proper due diligence, with serious consequences. Regardless of Dow's experience, the network suggests that it has the ability to engage in a "new model of economic cooperation".
Judgment
By making the results completely transparent and publicly available, this can provide distributed database technology that is fully transparent in elections or any other type of poll. In addition, smart etherium-based contracts help automate this process. With the application of Boardroo, it is possible to make organizational decisions to occur on the blockchain . This effectively means that corporate governance becomes fully transparent and verifiable when managing digital assets, property rights or information.
Checking the supply chain
Consumers increasingly want to know whether the ethical claims made by companies about their products are real. Distributed notebooks provide an easy way to prove that the backgrounds mentioned on the things we buy are real or not. Transparency comes with the time-stamping of the date and location, or, for example, corresponds to the product number.
The UK-based Provenance also reviews the supply chain of a range of consumer goods. Taking advantage of the etherium pluchen is a pilot project that can ensure that fish sold in sushi restaurants in Japan have been harvested sustainably by their suppliers in Indonesia.
Store files
Storing files on the Internet in a decentralized manner brings clear benefits. Distributing data across the network also protects files from being hacked or lost. Where the Planetary File System (IPFS) makes it easy to visualize how the distributed Internet can work. Like BitTorrent's online data migration, ISIS eliminates the need for centralized client-server relationships (ie, the current network). So that the Internet consists of fully decentralized sites that have the ability to speed up file transfer and transmission times. This is a necessary upgrade to content delivery systems currently loaded on the web.
Market forecasting
It has been shown that the collective outsourcing of forecasts of event probability is highly accurate. Opinions on the Mediterranean eliminate prejudices that distort judgment. Now, the forecast markets that pay compensation according to the outcome of the event are already active. This is the technology that will undoubtedly find other applications in the coming years.
Augur allows the market to predict stock quotes based on real-world events. So that participants can make money by buying the correct prediction. The higher the shares purchased in the right result, the higher the yield.
Protection of intellectual property
As is well known, it is possible to reproduce digital information without limit - and widely distributed thanks to the Internet. This has given web users a world-wide gold mine of free content. However, copyright owners were not very lucky, as a result of losing control of their intellectual property as well as financial suffering. But using smart contracts, it is possible to protect copyright and automate the sale of creative works over the Internet, eliminating the risk of copying and redistributing files.
Mycelia uses balkin to create a peer-to-peer music distribution system. Where he founded the British singer and songwriter Emotion Hipel Mycelia, so that musicians can directly sell the songs to the public, as well as samples of the license for producers - all these functions are conducted automatically through smart contracts. Here is the ability of the blockchain to issue payments in the amounts of fractional digital currency, and this indicates that the use of the Blockchain has a strong opportunity to succeed.
Internet Things (IoT)
This technique is defined as a network-controlled management of certain types of electronic devices - for example, monitoring the air temperature in a storage facility. Using smart contracts, it is possible to automate remote systems management. With a combination of software, sensors, and network facilitates the exchange of data between objects and mechanisms, the result is to increase system efficiency and improve cost control.
The biggest players in manufacturing, technology and communications are competing in control of IOT such as Samsung, IBM and AT & T. The natural expansion of the existing infrastructure dominated by incumbents would allow Internet applications things to run the chain of predictive maintenance of mechanical parts for data analysis, and to manage large-scale automated systems.
Identity Management
There is a clear need to improve identity management on the Internet. The ability to verify your identity is the focal point for online transactions. However, the ways of exposure to security risks that come with online trading are at best. Therefore, account books provide improved authentication methods, along with the ability to digitize personal documents. A secure identity will also be important for online interactions - for example, in a common economy, good reputation is the most important requirement for online transactions.
On the other hand, the development of digital identity standards proved to be a very complex process. Technical challenges in online identity solutions also require cooperation between private entities and government. In addition, the need to navigate legal systems in different countries has become a very difficult problem. While e-commerce on the Internet currently relies on SSL certificate (green lock small) for secure transactions on the web.
Anti-money laundering and customer knowledge
Anti-Money Laundering (AML) and Customer Knowledge (KYC) practices have strong potential for adapting to the blockachin. At present, financial institutions must undertake a multi-step process for each new client. You can reduce your customer know-how costs by verifying customers across organizations, while increasing monitoring and analysis effectiveness. Hence, Polycoin began to provide a money laundering solution and customer knowledge that involves transaction analysis. So that transactions identified as suspicious are referred to compliance officers. Another emerging company, Tradle, is developing an application called TiM. This application allows customers to capture a snapshot of the main documents (passport, utility bill, etc.) and once these documents are verified by the bank, so that the data is encrypted on the blockbuster.
Registration of land ownership
Since the books of accounts are publicly accessible, the blockchain can make all types of record keeping more efficient, and title addresses are an example. They tend to be prone to fraud as well as being expensive.
A number of countries are undertaking land-based land registration projects. Honduras was the first government to announce the initiative in 2015, although the current status of the project is unclear. This year, the Republic of Georgia has promoted a deal with the Pitfury Group to develop the blockchain proprietary title system. Hernando de Soto, a leading economist and property rights lawyer, is said to advise on the project. Recently, Sweden has announced that it is experimenting with the application of blockchain on property titles.