Bitcoin knows almost everyone, blockchain almost nobody. How does the technology behind cryptocurrencies work and what are the benefits of it?
For some time, the bitcoin cryptocurrency has attracted attention with only negative headings. But constant exchange rate fluctuations do not move scientists and entrepreneurs. They are almost exclusively interested in the technology behind bitcoin: blockchain. Behind closed doors, science people are working diligently on business models based on new technology. Writer Robert A. Küfner (Das Krypto-Jahrzehnt), who thanks to bitcoin became a millionaire, even claims that blockchain has the potential to completely change the rules governing the world of economy and business.
What do the experts say?
Is this just wishful thinking, is there anything in it? It is certain that this technology has not existed in everyday life. Hardly any consumer knows what blockchain.
What is blockchain?
Blockchain is a technology that allows you to document business transactions like orders or cryptocurrencies. It works like a cash register in the analog world: all transactions taking place at a specific time are saved in a file called a block. Just like on the cash register page, the space in the block allows you to save a certain number of transactions. If a new transaction occurs, all the data blocks generated so far are needed. These are connected with each other by means of encryption technology. This is how a constantly growing block of data block – blockchain arises.
Is blockchain technology safe?
Experts are convinced that technology can be trusted, because each calculation operation is checked and provided with an unchangeable code (hash value), consisting of numbers and letters. The data block receives the next calculated hash value. Without the hash values of this block, you can not create a new one. Then you can not change any block, because it would change its original hash value. To increase security, the entire blockchain is not stored centrally on one computer, only separated into many machines participating in the blockchain system. This makes manipulations even less likely.
Can blockchain get to everyday life?
Even experts say that before the final breakthrough will take place, several years will pass. – With blockchain technology, we are where the internet in the nineties – believes prof. Dr Gilbert Fridgen from the Fraunhofer Institute in Frankfurt. In the digital world of tomorrow, blockchain will turn upside down many industries such as the Internet, also predicts the cryptocratic millionaire Robert A. Küfner. His company, Advanced Blockchain AG, already advises companies from the machine building industry and automotive companies. The specialist sees the potential of large profits in banks, stock exchanges, insurance, logistics, health care and energy supply companies.
I’m Justin, I live in Brazil. On my blog you will find information on various topics related to the world of internet technology, I am mainly interested in Linux and Windows systems 🙂 and things related to them … but not only. So here you can also find information on other topics, tutorials and guides on various interesting online tools, programs, etc.