The technology was invented for the digital currency, - bitcoin. However, nowadays the technical community is looking for other potential uses for this technology. After all, they can be mass. By allowing digital information to be distributed but not copied, the technology of the block system created the basis. It is like a new kind of the Internet.
the 21st century, it is complicatedly to follow all trends' growth,
especially in the field of information technology, isn’t it? Since
this is our work, we consider it our direct duties to acquaint you
with the modern updates and knowledge in the field of IT. One of the
newest and innovative ideas that have agitated the world of the IT
industry is the blockchain,
which quickly gained the trust of many and, therefore, is considered
as a huge step forward and an incredible technological breakthrough.
it, there are many controversial discussions. A lot of us still have
not a complete understanding of what it is. Nevertheless, its
popularity and opportunities haunt modern person's mind. It is the
useful and necessary tool that affects the prospects of
implementation and simultaneously has its flaws. So, we will talk
technology was invented for the digital currency, - bitcoin. However,
nowadays the technical community is looking for other potential uses
for this technology. After all, they can be mass. By allowing digital
information to be distributed but not copied, the technology of the
block system created the basis. It is like a new kind of the
is called digital
not for nothing. To date, the total value of this currency is about $
18.8 billion. Blockchain can create the other types of digital value.
It is not necessary to know how the blockchain works, as well as, for
example, the Internet or a car. However, the accessibility of basic
knowledge about this brand new technology will allow understanding of
why it is
breakthrough. On the one hand, the defined concepts provide insight
into what is what. On the other hand, the deeper you go, the more
questions appear. So, let’s go.
is an eternal digital distributed magazine of economic transactions,
which can be programmed to record not only financial transactions but
virtually everything that has value," - Don and Alex Tapscott,
authors of the "The Revolution of the blockchain" (2016).
blockchain can be used almost for all the areas of activities.
Provide a table with information duplicated thousands of times in a
computer network. Then imagine this network updating the table
regularly. Consequently, now you already got a general idea of the
blockchain. By the aid of it, people came up with a
(bitcoin) and rapidly commenced the invention of a completely new
financial ecosystem. So, blockchain is a tool that allows you to
is a continuous sequential chain of blocks (linked list) that
contains information. The most frequently copies of the chain of
blocks are stored and independently processed in hundreds or even
thousands of different computers around the world.
a financial point of view, another definition is “the way of data
stored or a digital register of transactions, contracts...” All
that needs a separate independent record and verification, if
necessary. You can store data on issued loans, property rights,
traffic violations, and marriages. That is almost everything. It
should be used anywhere if it is a necessity. Today we can see the
spread of the blockchain in the medicine, document management, etc.
And the scope of its implementation is growing every day.
a simple example: the production and operation of the boats. They
periodically need to be repaired. Each breakdown or malfunction, all
information is recorded and stored in one of the blocks.
In this case, of course, everyone can monitor it. Thus, there is the
possibility of a direct determination of the history of a particular
boat, what happened to it, to look at the documents for it.
of the blockchain
fact, it is effortless to imagine what is a blockchain
and what are the general principles of its work. Not
even in IT. The noun blockchain
by itself clarifies its content. It consists of the informational
blocks linked by the complex cryptographic and chronological methods.
The particularity of the structure is that each new block is added
strictly to the end of the chain.
implements a method of hashing data, which is an irreversible
process. This is a kind of encryption. The number of the networking
computers performs it. If the result is the same, then the block is
assigned a unique digital signature. As a result, it leads to the
creation of the new informational block. If this happens, it is no
longer possible to change it (centralized). You can only add records.
the users of the network have free access to a current version of the
registry. It enables both a transparency for all participants and a
complete security for data. As the blockchain keeps records publicly,
it is easy to check them up. This information has no centralized
version which could be damaged by the hacker. It is quite convenient.
is the reason for such a high popularity?
did the blockchain become so popular and burst into the confidence of
the modern human mind? An answer is quite simple: there is a
guarantee of carrying
out the transaction. It is impossible to replace, edit, damage, or
delete data from a new block. Under the sole condition, the creation
is possible: it does not contradict the existing structure of the
blockchain. Thus, everything is interconnected, and all the elements
depend on each other.
distributed nature of the blockchain databases makes hacking almost
impossible because of the necessity of simultaneous access to the
copies of the database on all computers in the network. This factor
ensures 100% data security and minimal risks of hacking. You have to
try very hard to get the system malfunctioning.At
the core of the demand for a digital currency is a deficit. More and
more people become able to understand, what are the tokens, bitcoins,
and the blockchain. This provides the demand for it. Paying attention
to the limits of any digital currency, and then with the growth of
its demand, the cost of tokens rises. It means that the race of the
exchange shows the digital deficit.
that you have 1000 bottles of water for two people on hot days. The
cost of it will decrease. But if you have just two bottles and many
thirsty people around, the cost of its increases”, - Nick Spanos
is an additional indicator of the security of information in the
blocks. In case the original document or transaction is later
changed, they will receive a different digital signature as a result,
which signals a mismatch in the system. Despite the attractiveness of
almost ideal at first glance technology, it still has its drawbacks.
The most serious of them is a required enormous computing power for
the possibility of using blockchain. In addition to this, not all
block-based solutions can scale and match the load.
excludes any intermediaries (people or the companies) because the
system works on the mathematical algorithms. And that’s the future.
So, we are approaching the digital society. If you intend to
implement a blockchain system and use it in your project, you first
need to think about the necessity for this. Is it worth for your
product to be on the blockchain, will it bring the desired result to
the business/company? Analyze the ability of your system to use the
block system and its advantages, consider the power.