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.

 

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.

 

Japan Begins to Sell Real Estate for Bitcoin

Specializing in the sale of real estate Japanese startup company Yitanzi announced the plans to accept bitcoins as a payment.

Currently, one commercial property is for sale – a small building worth 547 BTC (approximately $ 6.4 million at the current rate).

The technical director of Yitanzi Yokozawa Yuske reported that now many crypto-enthusiasts are looking out for the real estate market, seeking to spend investment income. Yuske also noted that the Japanese real estate market has a large number of sellers who are ready to receive cryptocurrency as payment.

According to representatives of Yitanzi, the building will be sold for bitcoins in several weeks. Moreover, in the future, the company is considering the option of accepting the second largest cryptocurrency Ethereum.

The Rapid Fall of Bitcoin. What’s Happening to Cryptocurrency Market?

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Until recently, the Bitcoin rate was around $ 15,000, occasionally increasing or decreasing. But after the news about a possible ban on trade of cryptocurrencies in South Korea and the termination of mining in China, the cost of cryptocurrency began to decline. This morning the Bitcoin’s exchange rate dropped below $ 12 thousand. So, over the last week, the cryptocurrency lost about $3 thousand.

The main key for investors is to stay calm

Over the past year, bitcoin has fallen sharply several times. But after the falls, the currency usually returned to growth and topped its historical highs. However, the last time Bitcoin jumped very high up to $20,000 – on December 17. This is not the fact that the currency will ever be able to beat this record, especially after the recent changes in the market.

In addition  we note, that along with Bitcoin, the price of almost all cryptocurrencies falls down. That is, the whole market of cryptocurrency follows a downward trend. At the time of writing these lines, the global capitalization of all cryptocurrencies is $540 billion.

Bitcoin Tops $20,000

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After the rodeo last week, when the cost of Bitcoin increased by more than $ 5,000 in two days, there was a relative calm this week. Trades were held in the corridor from $ 15,000  to $ 17,500.

But this relative calm has not continued for a long time. Already on Saturday, the bitcoin rate overcame the mark of $19,000 and reached $19,500. On Sunday, the rise in the price of the crypto currency resumed, resulting in $20,000 mark. According to the Coinmarketcap resource, the cost of Bitcoin set a new record for mark $20089 for one cryptocoin. Accordingly, the capitalization of the crypto currency reached $326 billion. Then a small pullback followed the level of $ 19.6 thousand.

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Just as reminder, at the end of last month – November 28 – the price of Bitcoin was for the first time $10,000. Thus, in less than 3 weeks, the value of crypto currency increased by the next $10,000.