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Blockchain technology: all about the Blockchain database in simple terms

While the entire literate world for ten years was amazed at such a phenomenon as the crypto-currency, there was still a much more important invention called detachment. As it turned out, the database for crypto currency work can be used absolutely in any sphere and the community has recently been actively implementing Blockchain, finding it a very different application. What kind of a curiosity is this, why does the blockman have a great future and whether it is possible to earn on it investors, we will tell in this article.

Blokchan: what is it in simple words?

The rise of the blockchain is inextricably linked with bitcoin. It was for the operation of the first cryptocurrency that Satoshi Nakamoto invented a distributed database - it happened in 2008. Since then, Blockchain has been closely associated with cryptocurrencies and this somewhat blackens its reputation, because, unfortunately, in most cases, crypto is treated as something forbidden and illegal. Nevertheless, the database is gradually emerging from the "shadow" and more and more often you can hear about certain projects working on the blockchain.

Before going into the complex aspects of the existence of technology, it is important to outline what the blockchain is, because not everyone even has a general idea of ​​it. If we talk about the blockchain in simple words, then we can imagine it as a kind of database in which information is "packed" into blocks, and they, in turn, are linked into a single chain. At the same time, the database is not controlled by anyone, exists immediately on millions of computers and is almost 100% protected from hacking. To understand how such characteristics are possible, it is necessary to delve into the technical aspect in more detail.

How does blocking technology work?

As the name implies, Blockchain in its structure has blocks of information combined into one chain, which makes them interconnected - each subsequent block contains information about the previous one. Concerning the contents of the blocks, it can be noted that it does not necessarily include transactions related to crypto-currencies, and other information accompanying these payments. The information can be completely different, the necessary condition is the interaction between the two parties, a kind of transaction. Thus, the block system can be implemented everywhere where partnerships take place.

Conventional databases have a significant drawback - two users with access do not have the ability to edit the file at the same time. While one of them is making data, the other is forced to wait for the editing to complete. If we talk about the blockbuster, it allows a large number of users to have access to the system, which is a common transaction log. It is this nuance that makes it possible to say that a blockage can have such wide application.

If we explain the entire block system in an elementary example, then we can present it as a table with information. A regular table in which you can write down data and do it can all the participants who have the right to do so. In spite of the fact that the user has the right to enter some information, other participants check his editing and if the action was illegal (and in practice more bitcoins were spent than there are on the wallet or two transactions for the same coins were made) Then such information is rejected by other participants and does not fit into the next column of the table (block). The table is updated regularly on all computers that have access to it, and all participants see only up-to-date information.

Block-block is not terrible hacking, because it is cryptographically protected, it works on mathematical algorithms, and even a small probability of hacker attack is practically not terrible - it is not worth those colossal means that it is necessary to spend on it. According to the experts' assumptions, a massive attack can make the work of a distributed database difficult, or an attacker can falsify information, but for this it is necessary to have 51% of all network capacities. Of course, it's simply unrealistic to take over so many computers, and it will not bring any significant benefits.

Advantages and Features of Blockchain

It would seem that there is nothing special about the blockade, but this is only a superficial view, in fact, it is already spoken of today as a material Internet, emphasizing the scale and significance. Blockblade boasts such advantages:

  • Reliability - information from the blockbuster can not be deleted, copied or somehow used. Only the user who has the right to make changes can make changes (for example, you can spend only those coins that belong to you).
  • There is no single body that would manage the database - all participants have equal rights.
  • The block is infinite - you can write as many data, operations, etc. as you like. And all this good will be stored forever (until all the computers to which the blockade is copied are completely out of order).
  • Each organization, project, crypto currency has its own block, which can be combined with other similar databases through special programs (sidechains) for interaction.

One of the main advantages of the block system is that it makes it possible to store and operate information almost free of charge, whereas today in those areas where an innovative database can be implemented, there is a multi-level bureaucracy. Therefore, of course, the implementation of blocking is not beneficial to everyone: someone will lose their jobs, and some already outdated systems will simply be thrown out of use.

Blocker projects - what can work on Blockchain?

Recently, there has begun a real surge of blocking start-ups, and this is confirmed by statistics - more than 1 billion investments this year have already been spent on developing such projects. In this part of the article, we will not talk about crypto-currencies, the number of which is confidently approaching a thousand - they are already known about them. Another thing, the projects created for business and government agencies, because this is a serious step, when the blockade came out of the so-called shadow.

As soon as the developers saw the individuality in the block and realized that besides crypto currency, you can do other interesting things, then the active implementation of the database began in a variety of variations. And if initially they were attempts to create a trouble-free DNS server or an "eternal" cloud storage, today on the blockbuster they create programs for banking systems, social networks, land registries and even such giants as Microsoft turned their attention to the blockbuster.

Particular importance of blocking is in business, because it is ideal where monetary relations require the trust of the parties, which in normal conditions can not arise. For example, if we conclude a transaction, then we can not do without a third party - we can not be sure of a partner, so we need a bank, a notary, etc. Blocking allows partners to control operations, confirm or reject them without the participation of third parties, which simplifies the process and makes it much cheaper.

Surprisingly, blockage can be used absolutely everywhere, where information is stored and processed. For example, the EU Parliament expressed its desire to introduce a database into the process of state elections; The Central Bank of the Russian Federation, in association with other major banks, organized the Masterchain platform, designed to make operations transparent. Many large banks around the world expressed their desire to implement blocking in their work, among them: Bank of America, BNP Paribas, Bangkok Bank, BBVA and others. Today, many block-projects are launched to attract investments, service providers, media companies, insurance projects, etc.

Should I invest in block-technology?

Blokchan-technologies came to our world to "digitize" any assets, property rights and business relationships. In the era of technology, this is a completely natural phenomenon and there is no reason to believe that such a step will somehow not justify itself. Moreover, its workability and reliability of blocking has already proved - almost a decade of the existence of the bijectin was not overshadowed by bugs in the database, because they simply do not exist. Proceeding from this, it is possible with firm confidence to declare that the future of Blockchain technology is and it can dramatically change the world of material relationships.

Many experts are unanimous in their opinions and argue that the block is a more revolutionary product than bitcoin itself and if the future of the crypto currency can be uncertain (for various reasons), then the world community will definitely take Blockchain into service and it will be widely spread. From this point of view, investments in block projects are clearly beneficial, but as a rule, it is worthwhile to focus on long term and carefully choose real startups, which are really worthy of attention.

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  2. […] They still did not succeed. Overflowed blocks in the Bitcoin blockchain simply could not cope with the volume of transactions, [...]