What you need to know about blockchain not to worry

In recent years about how blockchain say about the future security of the Internet, without which we already do not seem to do without. At the request of GQ Ilya Sachkov, founder of the company to investigate cybercrime Group-IB, I understand what it is and how with its help not to lose all their money.

Blockchain - it is not controlled by anyone knowledge base about who now owns something. Technically, it is a chain (yes, here is a word chain) information about a transaction block. This chain - distributed among the participants network account book that can not be faked or make unauthorized changes to it (this algorithm, by the way, is the basis of the functioning of Bitcoin). But generally blokcheyn can be used to capture and control of any property - houses, stocks or intellectual property rights to the film.

This principle is called decentralized consensus as centralized requires a single database (eg, a bank database or cadastral register), the records that defines the authenticity of the transaction. The centralized approach is bad that a single database can be destroyed, modified, unavailable or does not exist. Plus we have a unified database manager with great potential to manipulate. So that a decentralized basis is much better, although the humanity it is not used.

Blockchain can be used to capture and control of any property - houses, stocks or intellectual property rights to the film.

For example, each owner Bitcoin wallet-stores at the device database with the history of all operations ever undertaken with Bitcoins. So you can check the origin of each Bitcoin each user and ensure the transparency of each transaction.

Technically, it works through the serial data encryption for each subsequent transaction. Each recorded in a block transaction is assigned an identifier (hash, which is obtained cryptographically), which is added to the header record of the next transaction, and so on. Hash chain on top of the transaction contains encrypted data for all previous transactions recorded in the block. Intervene and change a recorded transaction can not be - it would compromise the entire chain. That is thanks to either manipulate data or to cancel the operation can not be produced already.

Computers are absolutely reliable record of anyone at any point of time belongs to something (for example, the same Bitcoin). Common control authority not - the role of intermediary (a bank in real life) is distributed among all members of the network, and the computers communicate directly. 

It appears a fundamentally new system of trust between the parties - because the scheme is not possible mathematically. In relationships based on blockchain no one will ever be able to forge documents in the apartment, illegally re-register ownership stake in the business, put in pledge the car in five different places. That is why many unprofitable to blokcheyna principle came into our lives - they can not engage in manipulation and will be deprived of the illegal income. 

In relationships based on blockchain no one will ever be able to forge documents in the apartment, illegally re-register ownership stake in the business, put in pledge the car in five different places.

Now the state does not grant rights Bitcoin users - if you have stolen, the police state is unlikely to succeed. That is why from the beginning of 2015 Bitcoin-industry wave of thefts. I would recommend to keep your Bitcoin wallet for offline (Bitcoin Core), on a separate trusted device or a virtual machine, without open network resources. Purse must be recovery record, obligatory backup on a separate encrypted media. Do not forget about the usual precautions: timely updates, anti-virus protection, a firewall. Also, do not open suspicious emails, start investing in the letters and move on suspicious links.