Bitcoin and blockchain are becoming hot topics not only for TV and media but also for the general public. The biggest reason BitCoin is so popular is the price of nearly 2,000% in the last year. The popularity of block-chain technology, which is the basis of bit coin, has also risen. However, the block chain is a long-term investment.
Block-chain technology has the potential to cause a big ripple effect. In early 2017, Harvard Business Review said the block chain "has the potential to create a new foundation for economic and social systems." The report, published by the World Economic Forum in January 2017, predicts that by 2025, 10 percent of global GDP will be stored in block-chain or block-chain-related technologies. If you are not yet familiar with this technology, which is expected to account for 10% of GDP within 10 years, I recommend you start studying immediately.
What is a block chain?
The block chain is a digital log file that is encrypted and protected, and serves to protect online transactions. Bitcoin is the first application of the decentralized public block chain that was first conceptualized in 1991. Blocks are digital records that record transactions, and block chain participants need to agree to validate these transactions.
Generally, a block contains transaction data such as price, act (purchase, sale, transfer, etc.), time stamp. Every transaction (or series of transactions) generates a block. Each future block contains a cryptographic hash of the previous block (the current hash is typically SHA-256). Each transaction block is thus bound to the previous block in an encrypted manner.
If the block chain is publicly distributed like the bit coin, each participant can see all transactions in the block chain. The amount of money or property owned by a participant can not be known unless the information is included in the transaction record, but the value exchanged between the two participants can be seen and validated.
Any participant can prove ownership of a particular block of the chain account by presenting an encryption certificate that is extremely difficult to fake (in terms of encryption, "not simple"). The behavior of the block chain is similar to public / private key encryption in that each participant has a private key that can generate signed content and that all other participants can easily see this private key using the associated public key.
Block chains include public, private, and hybrid block chains, such as cloud computing. You can create your own block chains, use other block chains created by larger groups that share your benefits, or participate in public global block chains, such as bit coins. From a relatively recent point of view, the private block chain may participate in a public block chain, and the public block chain may participate in a private block chain.
Know block chain through bit coin
Most people first encountered the block chain through a bit coin, a popular encryption currency made in 2008 by a person or group using the alias "Satoshi Nakamoto" (I think Satoshi Nakamoto is a group rather than an individual I think it is more likely, but in this article, it is considered an individual). Nakamoto did not devise the concept of block chain, but he first proposed the concept of decentralized block chaining for distributed ledgers and transaction confirmation centered on digital money.
In October 2008, Nakamoto published a paper entitled "Bitcoin: Peer-to-Peer Electronic Cash System" on metzdowd.com's encryption mailing list. In 2009, Nakamoto created the first block of chain blocks and software that anyone could download and decrypt the bit coin in an encrypted way. I also downloaded the software at the time and created three bit coins for the first few days.
Bitcoin's first "official" transaction value was the purchase of a 10,000-pound pizza with a $ 10,000 coin, although the rosy outlook for the final value was plentiful since the first day of the beat coin. The value of the current bit coin is much higher than it is now, with more than $ 16,000 as of this writing, and price fluctuations are significant.
The rapid and massive price hike attracted investors and financial company CEOs. Many investors liken the price rise of Bitcoin to the Dutch Tulip bubble, a famous event of the 1600s. Now, some investors make big money and pessimists stand side by side and watch their friends become rich.
Bitcoin, software, and distributed networks are designed to become more and more difficult to generate next bit coins each time a new bit coin is created. So to mine the bit coins that were available for a few hours on a single computer in the past can now be obtained by networking thousands of professional "mined" computers for weeks or months. Now, the amount of electricity used to generate bit coins is so large that it is regularly measuring the amount of electricity used to generate bit coins versus the world's total electricity usage.
Basically, the computational performance required to generate one bit coin is enormous, but computer operations to generate and verify bit coin transactions are also significant. Also, the size of the block chain increases each time it is traded.
In order to maintain the validity of the block chain, the size of the block chain, which must be mined and distributed to all participants, will continue to increase over time (block chain of bit coin is more than 100GB). Eventually, up to 21 million bit coins will be mined by 2140. This autonomous deficiency of Bitcoin is one of the factors that fuel the explosive price increase of Bitcoin.
In the article, "Encrypted Money is a New Classification of Assets for Realizing Distributed Applications," you can read experts' opinions on what bit coins are and what they are good for.
Bit coin can be bubble, but block chain is not bubble
Investors and financial experts are arguing over the value of beat coin, but no one has objected to the legitimacy of the block chain. Some of the largest companies in the world have built a block-chain team and created new business units. You can create and use block chains privately in the cloud or inside the enterprise.
Companies that support the block chain project that almost all future financial transactions will be based on block chains. Block chains can handle very complex financial transactions in seconds.
"The average borrowing transaction takes a month to be finalized in financial terms," a CNBC correspondent who supports the block chain of the multinational bank Credit Suisse said in an interview with CNBC. "But if you use a block chain, the deal will be completed in a matter of seconds," he said. "By doing all the complicated transactions more efficiently through the block chain, you can put the workforce and capital into more productive work." Stressed.
Almost every industry with a lot of financial transactions is looking for ways to implement block chains within their business and industry. Block chaining is a hot topic, regardless of field. Currently, large cloud companies in the computer sector such as Microsoft and Amazon provide various block chain services.
Simply browsing the block chain on the Internet shows an incredible amount of information and services that have appeared since 2016. The bit coin can be a bubble, but the block chain is currently in its early stages of growth and will firmly establish itself in the future