Hello All..To day I wanna share about blockhain,Bank System and Cryptocurrency .....
Blockchain
In 2009, Blockchain technology was created to remodel the circulation scheme. By the way, transactions between A and B can occur without intermediaries, in a shorter time, cheaper, and even much more secure, than transactions offered by banks or other similar institutions.
Blockchain is simply an online global database-one that can be used anywhere in the world connected to the internet. Unlike other databases that are usually owned by certain institutions such as banks or governments, Blockchain does not belong to anyone. Make it more transparent because it can be accessed by anyone. So how do data sets of people-unattended third-party institutions-could be a safer place? The key, is the number of Blockchain users. The more users, the more difficult it is to hack. The transactions that occur will be recorded by the users' computers at once announced for verification. The transaction records are then combined with other transaction records, then tied-or chained-in chronology. Records of the transaction are then called blocks. And that barrage of blocks is called Blockchain.
This technology was born and developed along with the rise of Bitcoin, as a digital currency. In 2009, a mysterious figure-whether alone or in groups-who named himself Satoshi Nakamoto introduced the Bitcoin currency as an alternative to the means of payment today. In the paper, he also explains the Blockchain technology that underpins the application of Bitcoin with the term timestamp (timestamp)
Bank
The banking system with the usual Fiat money. U.S Dollar is the reserve currency, and can be printed as desired when needed, the inventory is not 'closed'. They work with banks that keep the number of accounts between them and how many have been transferred. Previously, it was a local system and had passed, it was a barter with coins made of precious metal.
The banking system is open to the manipulation of numbers, exchange rates, and disruptions by bankers and governments, and as the ease of traditional money is printed, it gradually loses its value. Many banks run 'fractional reserve banking', where they only have a cash supply at one time for a certain percentage of subscribers, if all customers try to withdraw money simultaneously, the bank will fail.The bank has certain legal obligations to customers and has the ability to reverse payments in many cases. Banking system networks have been working for decades, allowing reliability for digital transactions even though it takes a long time. This is happening all over the world.
Bitcoin was created as a digital currency, by an entity known simply as Satoshi Nakamoto. This currency has a supply of coins and maximum rules about its operation. This currency is created to solve the problem that the bank can be manipulated by the government and bankers as well as to grant privacy freedom to people in transactions, even though all transactions are published in the ledger, because the delivery / receiving address remains private and newly used for transactions different levels of privacy can be expected.
HOW DOES IT WORK?
Bitcoin works in a fundamentally different way on fiat systems. Bitcoin networks have many nodes. This knot is distributed around the world, run by bitcoin enthusiasts, main mining pools, and others. This knot, all trying to solve math problems while simultaneously storing memory of all recent transactions that had just occurred after the previous problem was solved and the previous rote transaction was written to 'block' and recorded in blockchain which is a distributed ledger. This is the smart part about bitcoin, distributed ledger is a type of database called blockchain. This system is designed whereby all nodes hold full copies of all blockchains that are currently 7 years old at the time of this writing.
The system is designed in which most nodes must agree that a transaction is valid, or in fact 51% of nodes should do this. The idea is that if at least 51% of network computing power is honest and well distributed, this ledger is very jammed even by people with wealth and power. Banks seek to incorporate their own blockchain, but due to the computing power run by the bank itself, this does not fully guarantee in any way that it is so bad. Currencies such as bitcoin ledger are managed by individuals and companies that are willing to run nodes and validate transactions.
Therefore, blockchain captures the tamper-proof of transactions that occur, and solves the problem of a decentralized digital currency. The more computing power on a separate node that is added to the network, the more secure the network. Each bitcoin protocol rule must be agreed by at least 51% of the node, although in reality this figure is higher due to the variation of block breaking time, and 49% of other networks can still reject the majority of other 51% rules and still 'work' on their own.
Bitcoin has the ability to be broken down into many units, called 'satoshi' on the smallest amount. Currently, 100% bitcoin network nodes agree that 21 million bitcoins are a fixed amount. Unlike Fiat's money that can be printed at central and government banks, the bitcoin inventory closes at 21 million units which overall can be split 100 million times. Bitcoin is introduced at a flat rate every 10 minutes on average. When a miner solves a mathematical problem, they get 12.5 bitcoins at the time of writing. It originally started at 50, halved in 2012, then in 2016, trimmed to half every 4 years. By 2020, the expected bitcoin per mined block is estimated at 6.25. Once everything is printed, transaction costs will give miners an incentive to mine and record transactions on the blockchain.
In contrast to the traditional banking system, which imposes high transaction costs, bitcoin enables global transactions at very little cost. The idea that once all the bitcoins are printed, the person who contributes computing power is given an incentive, while keeping supplies closed and well distributed. Transaction delivery does not include 'transaction fees' or 'miner fees' with transactions, typically 0.0001 bitcoin or the like, during this high network load time may rise slightly. You can send deals at no cost and expect the miners to still put them in their blocks, which they may do when the network demand is low. Small fees increase if thousands of transactions are taking place. This cost goes to the miner who generates the next block. Cost is an incentive to mine when all bitcoins are printed. The bitcoin consensus rule means that no one can manipulate transaction costs for their own motives.
Blockchain, Bank System and Cryptocurrency | Ecency
