The block chain, or blockchain, is the system of records that guarantees the safety of operations performed by crypto-coins - the Bitcoins. And the sooner you get to know him, the better.
You have certainly heard of Bitcoin, the "criptomoeda" of the internet. Surely you have read somewhere about this digital technology that allows to reproduce, in electronic payments, the efficiency of payments with bills. You should have seen that payments with bitcoins in theory are fast, cheap and without intermediaries. And that, moreover, they can be made for anyone, who is anywhere on the planet, with no minimum or maximum value limit. Now, it is worth knowing more about the technology that gives support to all these transactions, and that many consider revolutionary: the blockchain.
But I've heard that Bitcoin is not yet secure ...
Yeah, a recapitulation is worth about this controversy. When Bitcoin emerged in 2009, many suspected the novelty, especially for its potential to support illegal activities. The uncertain nature and lack of a central authority made cryptomedean only convenient for people who did not want their financial transactions to be traced. In this way, drugs, weapons or any other illegal trade could be negotiated on the web with little concern regarding possible interventions by the legal authorities. And Bitcoin survived only online, avoided by banks and institutions that offered legality to financial networks.
However, five years later, history has changed a lot - a transformation that only made itself accentuated throughout 2015. Perhaps because of Bitcoin's growth and industry acceptance, or even the sense that success is inevitable for Forms of digital provision, financial institutions are now looking for ways to participate in this crypto-financial ecosystem. According to this Financial Executives portal article, recent CoinDesk data shows that investments in Bitcoin companies have risen about 250% - from $ 95 million in 2013 to $ 362 million in 2014. Even the New York has entered this market with the creation of a Bitcoin price index, and large companies like Dell and Dish Network now accept the currency as payment.
And what does the blockchain have to do with all this?
A lot of things. But first, let's understand what this technology is.
Also according to the text of the Financial Executives,
BLOCKCHAINS ARE AN ACCOUNTING SYSTEM. IT IS A WAY TO CLARIFY AND VALIDATE A REGISTRATION, A TRANSACTION. BUT, OTHER THAN OTHER SYSTEMS, THE REGISTRY GENERATED BY THE BLOCKCHAIN IS DISTRIBUTED; IT IS PRESENT ON EVERYWHERE WHERE THE SOFTWARE IS ROLLED. As technology adjacent to Bitcoin, for example, blockchains are preserved in millions of personal computers, as well as in data warehouses. There is no single bank that owns the records, and each instance of Bitcoin's blockchain has a total of transactions in its market.
The verification of the transaction is done with heavy encryption which, in the case of Bitcoin, is made possible by the power of processing by crowdsourcing, that is, by the creation and / or production model that has collective labor and knowledge to develop solutions And create products.
And to ensure that one of the parties involved actually has the promised Bitcoin in a transaction, or any asset being tracked by this type of system, just a simple blockchain query. There is no need for a bank or intermediary; So the assets within the blockchain exist as if the money were in the hands of a person. Any individual can accept Bitcoin as payment, because its existence is verifiable.
But it's still complicated to understand what blockchain is ...
Yes, the definition is somewhat technical. But let's think as follows: in the case of Bitcoin, how can we prevent double spending with criptomoeda? According to this InfoMoney article, the last transactions of the network should be grouped into a block type, which contains a reference to the immediately preceding block, and stamped it with a code, the hash. And the new transactions will follow the same process, which will form a chain of records blocks - hence the term blockchain.
Thus, the blockchain can be understood as a great ledger - the one where all the accounting transactions of a company are recorded. But, as we have said, it is a ledger shared by all those who participate in the system - in this case, Bitcoin - in which transactions are recorded irreversibly.
In short, it is the chronological record of all transactions that occurred on the network, and which were compiled and validated. It is public, unique and shared by participants in a specific system.
To conclude, the blockchain is the intelligence that gives support to what promises to be one of the great corporate revolutions of the next few years - the crypto-coins market. And that is why, the sooner you become familiar with the technology, the better prepared you will be to use it.
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