Introduction
If you are just beginning to learn about cryptocurrencies, many of the terms used may seem confusing. The word blockchain may sound like it could be a part of an old automobile, or a similar piece of machinery. In reality a blockchain is nothing like this, it's actually a term used to describe a computer programming algorithm with the ability to store large volumes of new and old information related to that chain. Many blockchain projects at the very least have a few things in common; each will have a distributed ledger for managing the blockchain, a finite supply of tokens or coins, and they will operate on a serving platform capable of hosting transactions. Since the introduction of blockchain technologies the world and how we handle intense volumes of information is changing drastically.
What is a Blockchain?
Most favorably, a blockchain is an archive of digital records; wherein each individual new block has a record of the previous block, a timestamp, and records of new entries of data into the system. Each new block is kept in the chain and the blocks are linked together via cryptography. A blockchain, in other words is an open to the public distributed ledger, the ledger is capable of recording all transactions performed on the network with great efficiently. Once new information has been verified and added to the chain it is permanent unless all nodes vote to make a change, this make information nearly unalterable and increases security accordingly. All blockchain information can be accessed by the public. The first genesis block of the bitcoin blockchain was mined by Satoshi Nakamoto on January 3rd, 2009. Stored inside the genesis block was a statement that essentially warned of the instability of traditional fractional reserve banking systems.
Since Satoshi’s first successful implementation of blockchain technologies to support and run the bitcoin network, many new developers have appeared with ever evolving ideas and practical ideas for the use of blockchain technologies.
Custom Built Blockchains
Some few years back a very talented young man named Vitalik Buterin had the idea to create a custom blockchain different from any other, this blockchain boasted a fast and powerfully shared global infrastructure with a securely encrypted core that can host many different kinds of business of applications. This custom built blockchain is known as the Ethereum network today, it has evolved into one of the most successfully built and widely applied custom blockchains to date.
Today Ethereum provides constant support and functionality to the largest volume of business to business applications run on blockchain technologies in the world. Vitalik’s strongest theory is that a good blockchain application should always be run by a decentralized network that contains shared memory functions and top notch security.
Ethereum cryptocurrency economics are founded upon strong cryptography, ensuring privacy and the safety of all users upon it’s network. Ethereum has a secure base layer and a high speed protocols that allow all people around the world to develop and build real time applications for data storage and archiving. At the heart of the design is the security of consensus protocol: this protocol does not depend on any one person, instead it depends on mathematical proofs and systematic design.
Related Terms
A Blockchain is an archive of digital records. Every new individual block in the chain has a record of the previous block, a timestamp, and records new data entered into the system. The blocks and data are linked together by cryptography. The term Cyptography refers to using encryption to store data safely in the face of adversaries. Blockchains are securely managed by distributed ledgers. A distributed ledger is essentially a computerized ledger that manages transactions for the blockchain.
Accounting ledgers have been widely used throughout history, more recently new advancements in computing allow electronic ledgers to be distributed throughout the world on node network systems. Each node independently records data and then votes to ensure the majority of nodes that network agree on the results. This verifies that all information is correct and the database is then updated. Multiple nodes operating around the world creates a world wide node network systems.
What’s Next In Blockchain Technologies?
As different information and archiving needs come into play today and in the future, we will continue to see ever evolving fields of blockchain technologies emerge. It has been noted that blockchains can improve almost every active database system used publicly in the world, simply because they can link real information in real time. There is no longer a need to wait two days for large overworked singular databases to be updated as new information is entered, blockchains can eliminate that by instantly storing information throughout world wide networks and make it publicly available from anywhere in the world. Additionally, continued blockchain technologies will evolve with better potentials of transparency and use.
To all that have biased opinions of past and current uses of blockchain technologies and electronic currency use by criminals, I would argue that whatever has happened in probably to a far lesser extent that the misuse of traditional fiat currencies like the U.S. Dollar. Consider how many U.S. Dollars have been used in drug trades, illegal payments, fraud, and how in reality money ever influences the decisions of our country. If we took money out of U.S. elections what choices may be made for the better? What if electronic currencies could be designed to prevent poor uses of money because of a transparent currency system?
In reality the U.S. Dollar and Bitcoin are tools in the hands of a user, you should always know who you are doing business with, known as KYC or Know your Customer. With the invention of electronic currencies we may actually be able to prevent many instances of currency misuse under the right implementation of this. In light, I would think to give more thought about how we can better deter criminal activities by modifications to future blockchain designs, and support more transparent currencies with many informational possibilities. This would be helpful in view of better business and personal practices,
in ways that traditional bank notes have struggled with in this past.
Addressing classical database system lag issues widely seen in large databases of informational records, billing, food safety, identity, and more. Normal lag time and communication issues may leave citizens behind in real world events. If warning notices and updates could be sent to restaurants or schools in real time communications for info on contaminated food supplies, illness outbreaks or disaster public blockchain database systems could prove useful.
On the leading edge of future blockchain revolutions is a company called VMware as they recently disclosed information about working on several projects that include: cutting edge cloud computing, artificial intelligence and enterprise blockchain solutions.
One day we may even see identity and safety related databases that are efficiently run on blockchain technologies. With every weakness there is actually a possibility for improvement, the ability to see and understand this in certain cases may be dependent upon your knowledge, skills or perspective. As blockchains offer faster and more secure data archiving and money moving solutions in real world time, there is still a lot of potential left untapped to solve tough problems. It’s getting harder and harder to be a crypto skeptic. Live digital cryptocurrency exchanges allow all people without prejudice to trade from anywhere in the world instantly.
You will find all major cryptocurrencies available for trade on secure trading platforms like Bittrex.com and Coinbase.com.
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