Simply about Blockchain

If you have not spent the last couple of years in a hermitage, you’ve probably heard about bitcoins and blockchain. Now, even schoolchildren are actively engaged in mining. Let’s try to figure out what is really blockchain and why everyone is going crazy.

The heart of the matter

Blockchain technology is primarily designed for secure storage of data. Here you can store any important information, from credit obligations to new currencies. The reliability of the entire structure is due to the fact that the register of data is not concentrated somewhere in one place but is distributed among thousands of users around the world. Thus, the very possibility of a hacker attack and some kind of clandestine manipulation of information is excluded.

Cryptography

Actually, the blockchain is just a chain of cryptographically connected blocks. A new block is added to the end of the whole chain, all blocks together are connected by mathematical algorithms. This technology can be used not only to record financial transactions, but for everything that has value.

Hashing

The hash function is a special algorithm that takes input data (any, from image to binary code) and creates from it a code sequence of a specific length. Same files will produce the same hash on the output.

Database

The easiest way is to imagine the blockchain as a kind of database, duplicated tens of thousands of times throughout the network. The database is updated constantly, which ensures transparency and verification of information.

Safer than bank

That sounds ambitious, but according to many experts, the blockchain really became the guarantor of information accounting. The use of this technology excludes the influence of the human factor on the outcome of the transaction: without the agreement of the parties involved, even changes to the general register of data will not be made.

Protection against intrusion

Copies of the database are kept on all participating computers. Decentralised system makes hacker attack impossible. In addition, the hashing process is irreversible, which allows reliable security of personal data: an attempt to change a transaction or an original document will result in a new hash, different from the existing one in the system.

 

How does Cryptocurrency Work

Bitcoin is a decentralized cryptocurrency. Its emission is not controlled by any state, transactions are transparent and anonymous. The system is securely protected, it is simple and at the same time extremely complex. In a couple of years, the cryptocurrency and mining are spreading all over the world.

Who Invented Bitcoin?

The history of the Bitcoin creation is ambiguous, intriguing and mysterious. The author of the cryptocurrency is the ephemeral Satoshi Nakamoto – an Internet user (or a group of users) who published an article on cryptocurrency in the mailing list at the end of 2008. They described the digital peer-to-peer currency. At the beginning of the next year Nakamoto released the first software for working with cryptocurrency.

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Bitcoin Basis

  • Hash function. A mathematical transformation by an algorithm that turns any set of information into a unique number-letter value of a certain fixed length – a hash. Something like a cipher. Even a small change of one character in the original data set, causes the output (hash) to change drastically.
  • The key element of the bitcoin system is a blockchain. It is a chain of blocks where information on transactions in the network is stored for the entire time of its existence. A copy of this unique database is kept by every member of the system, gradually and constantly updated due to the receipt of new blocks.

Blockchain , Distributed ledger technology , bitcoin concept. Electric circuit graphic and infographic of Block chain , network connect , security , binary coded icons.

Why is It Safe?

What happens if someone decides to change the transactions in the block and cancel the money transfer or change the addressee? He can do it, but then the hash of the block will change. A new branch will appear in the chain.

To fix its fraudulent block, a hacker will have to solve a new task in 10 minutes faster than others. And one can not solve it beforehand by building blocks, because the solution depends on the hash of the previous block. Thus, an attacker will have to own at least half the power of a Bitcoin network, in order to solve a new task with 50% probability and build new blocks. All in all, this is practically unreal and completely unprofitable.

How are Bitcoins Mined?

Performance diagrams of the network clearly demonstrate that video cards are not of the utmost importance in the field of mining. CPU left this niche in 2011, GPU – in 2013. Now the Bitcoins are mined on the application-specific integrated circuits (ASICs), which are exclusively for the hash calculation. Nevertheless, lots of other cryptocurrencies are still being mined on video cards.

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The Founder of SpaceX Elon Musk Admitted That He Doesn’t Own Bitcoins

The head of SpaceX and Tesla Inc, Elon Musk, ranked 41st among Bloomberg billionaires with a fortune of $ 21.6 billion, said he does not own bitcoins, with the exception of the 0.25 BTC, which the comrade once sent him.

Previously, SpaceX former employee Sahil Gupta put forward the theory that Elon Musk is the mysterious creator of Bitcoin, Satoshi Nakamoto. Nevertheless, the community was sceptical about this hypothesis. Soon the statement was denied by the billionaire himself.

 

Residents of Arizona will be able to pay taxes with Bitcoin, Ripple and Ethereum

Arizona can become the first US state, whose residents will soon be able to pay taxes using cryptocurrency. The corresponding bill was passed by the State Senate this week.

16 senators endorsed the bill, 13 legislators opposed it, but in the end, a three-vote margin was enough to pass the document. Now the bill will be forwarded to the Arizona House of Representatives for further consideration.

How can it change the life in Arizona?

The representative of the Republican Party Jeff Waninger noted that changes in the state’s tax law will make Arizona a comfortable place to live for users of new technologies. He also believes that in this way Arizona sends a signal to everyone in the US and the rest of the world that in the future the state will be open to blockchain and digital currencies.

At the same time, the representative of the Democratic Party, Steve Farley, warns that the bill shifts the “load of volatility” of bitcoin prices to taxpayers who will continue to use the US dollar.

“It would mean that the money goes to the state and then the state has to take responsibility of how to exchange it,” said Steve Farley.

Read also : BILL GATES IS GOING TO BUILD A SMART CITY IN ARIZONA

Canadian VersaBank is Building a Digital Storage for Cryptocurrency

The smallest in terms of assets the Bank of Canada VersaBank announced the creation of a digital vault for cryptocurrency. The new service will be launched in June.

“We’re using what banks are all about — safety and security — only what we’re doing now is saying that physical box in the basement is getting obsolete,” said David Taylor, chief executive officer.

Secure and Super Private Place

To work on the new service, the bank attracted the BlackBerry specialist Gurpreet Sahota. He will lead the team of developers of virtual storage VersaVault. The digital assets will be stored on servers around the world. As in the case of safe deposit boxes, the bank doesn’t know what is inside. In addition, the financial institution will not even have access to the contents of the storage.

“Our differentiator in this market is to be secure and super private,” said Taylor.

The large funds have already shown interest in the novelty. The cost of services in the bank has not yet been determined, but it will not be “cheap”.

LitePay Will Be Launched in The Near Future

LitePay is the new processing service for the Litecoin cryptocurrency. It will be launched in the near future and will allow companies and merchants around the world to quickly and easily accept “digital silver” as payment for goods and services.

The beginning of work on LitePay was announced by the Litecoin Foundation in December of last year. Now the developers are ready to present the product to the general public.

Users will also be offered the opportunity to order a debit card that can be replenished with any wallet and used to withdraw cash from any compatible ATM. The website of LitePay does not say which payment platform supports the cards.

d3mnxbb1jk701The popular Bitcoin-processor BitPay currently takes a commission of $5.00, and the confirmation of transactions takes a lot of time.

Taking into account the faster and cheaper transactions offered by Litecoin, such a service can be not only more profitable and convenient, but it will also help to broaden the adoption of this cryptocurrency and increase its liquidity.