Ashiq-uz-Zoha, Guest Writer: Mr. Chowdhury is a millionaire. He has a special interest in rare paintings since childhood.
He has a small museum with paintings collected from his whole life. Now the problem is, collecting these things and keeping them to yourself - both have a lot of trouble. Because different types of people keep an eye on them. Many times these lead to major organized crime or accidents.
Mr. Chowdhury does not want to get into any trouble when he is old. So for some time he had been thinking of a way to preserve all the art in his collection - so that they would be safe.
This problem of Mr. Chowdhury is actually many days old. When it comes to talking about the economy or, more specifically, the content of the monetary system. My knowledge of economics is not very good, as an engineer I try to explain with what I understand like everyone else.
The current financial system
From the various problems in the ancient barter system, everyone thought that there was a need for something that everyone has a price for - for example, gold.
Thus, gold has been used as a unit of exchange for many years. Over time, the paper currency system was introduced. Banks or banking systems are created to handle the financial transactions or exchange of assets of individuals or organizations in phases.
In the development of information technology, we are now thinking of a system where, directly, there will be a direct transaction of any asset that has money or monetary value through a more transparent process than a bank. Where any type of hacking, data theft or change is straightforward any type of number two is almost impossible in that system.
The paintings of Mr. Chowdhury, a millionaire, will be a safe way to transact.
The technology is called blockchain, which is currently seen by some of the world's leading technologists as the banking technology of the future, and some banks in some of the most influential countries are already investing billions of dollars behind the technology.
The blockchain system and the first cryptocurrency for it, Bitcoin, was designed and developed by a man named Satoshi Nakamoto. The word 'who' is probably not correct here, it is assumed that Satoshi Nakamoto is the codename of a group of hackers whose real identities are still unknown.
What is a blockchain?
Blockchain is the process of storing the encrypted information of all the financial or asset transactions that are being transacted around the world in a single period of time. In this system, a distributed and decentralized laser is completely immutable with that block.
It’s actually a little harder to understand in one sentence. That's why I try to say a little broken. The blockchain I'm talking about in my writing is the bitcoin blockchain. There are so many types it's hard to say.
Inside each block is all the data on the number of transactions in the world in the last 10 minutes or so. This data is open but encrypted which means everyone can see but what is needed is private to read. What people will see is the amount of transactions. It is not possible to know in this way whose money has gone to whom. The following picture shows what a transaction looks like.
Every block in the blockchain is completely immutable. Once a block is added to the chain, it is impossible to change it.
The blocks sit side by side in the order of their creation. Each block knows which block is before it. Thus one block is connected to another.
Blockchain is a distributed and decentralized system, meaning it has carbon copies on thousands of servers around the world. So even if one or a hundred servers or computers crash, nothing will happen to the blockchain.
Cryptocurrency
Like our conventional currency, cryptocurrency is a type of currency or medium of exchange. This cryptocurrency is used for transactions through blockchain. There are many such currencies, such as Bitcoin, BitCash, Monero, Lightcoin etc.
Bitcoin is currently the most well-known cryptocurrency. The price of this virtual currency seems to have gained rocket speed. In one year, the price of each has increased from one thousand dollars to about 18 times.
Within a month, the price of each bitcoin increased several times to 18 thousand dollars. However, after a short time, it turned into a tender. It went down to 11 thousand dollars. Within a week, it turned around again and on January 5, it was 18 thousand dollars.
How is Bitcoin made?
The regulator of all conventional currencies is the government of a country and the central bank. The central bank can create new currencies considering the country's economy and some other factors. Can print new 'notes' directly in Bengali.
Cryptocurrencies, on the other hand, are created completely differently. Here comes the new currency or bitcoin through a competition to solve a cryptographic puzzle every 10 minutes. Simply put, just keep a cool head h
Wow excellent article post you share