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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Nexus Earth Partners and SingularutyNET will Integrate Artificial Intelligence with Blockchain Technology

Nexus Earth Partners has announced a partnership with blockchain platform SingularityNET. They will conduct research on the joint use of artificial intelligence and blockchain technology. As reported on the company’s official website, this cooperation can lead to the creation of a blockchain AI as the most secure and flexible infrastructure.

The head of SingularityNET, David Hanson, stressed that this technology might become the most valuable in the history of mankind.

” It will become the single most valuable technology in all of history. This is the chance for us to change the world together,” Hanson said.

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Both companies seek to decentralize artificial intelligence and increase its safety, create technologies that will benefit society, rather than individual corporations and governments. Moreover, they set themselves the task of reducing the cost of artificial intelligence and making it accessible to more people.

The world’s most famous humanoid robot Sofia is based on artificial intelligence, loaded into the SingularityNET blockchain platform.