Hello, dear readers! This article will focus on blockchain technology: what it is and how it works, there are ways to make money on blockchain.
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After checking out this publication from beginning to end you will learn:
What is a blockchain and what are the benefits of the new technology;
Where blockchain is used and how this technology works;
What are the blockchain based platforms and projects?
The article also contains tips for beginners on how to get blockchain training.
Recently, there has been a lot of talk about blockchain technology. However, not all people in the financial sector understand what it is. What about ordinary people on the street? The only thing most people know about blockchain is its connection with Bitcoin. In simple words we talked in detail in the last issue about what Bitcoin is, when it appears, how it looks and how it works.
We could not create such a gap in your knowledge. Therefore, we have tried to highlight many of the subtleties of the presentation. Don't waste time, start reading now!
What is blockchain technology and, in simple words, how the blockchain system works and what are its benefits - read this article.
1. What is Blockchain in Simple Words - An Overview of the Concept + Advantages of Blockchain Technology
When studying any topic you must first understand the terminology. The word comes from a blockchain English phrase, and its translation looks like a blockchain ... This phrase perfectly illustrates the main meaning of the concept.
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Blockchain (from English blockchain) - This is a technology that collects information in a secure sequential blockchain using encryption ciphers. At the same time, the data chain is not stored on a separate server but on all devices connected to the network at the same time.
Blockchain is a self-contained system that does not require a third party to operate. Moreover, the consideration system is extremely open. In the process of creating a blockchain, the main goal of the developers was to move away from intermediaries.
Specialists say the widespread use of blockchain technology will lead to significant changes in the information world. This is explained very simply: decentralized data storage allows you to protect them from unauthorized access, e.g., unauthorized access, harassment, or any control.
Another important plus (+) technology is that intermediaries (financial institutions, payment systems) are no longer required for any data transfer operations. All information is transmitted protocol peer-2-peer, that is, directly from one user to another.
All participants in the system have access to information about the operational history as well as other participants. Furthermore, all system data is stored simultaneously on all devices in the network.
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Only the owner has access to the funds in the blockchain wallet. Banks usually do not deposit money with intermediaries. Thanks to this, transactions are not under anyone's control.
We wrote about what a blockchain wallet is and how to open it in more detail in a separate publication.
Blockchain is able to secure any operation involving the risk of one party to the transaction by refusing to fulfill the obligations of one party. This is why the list of areas that use the technology under consideration is constantly growing.
Blockchain technology can be applied to:
When making financial transactions with money;
At the conclusion of agreements and contracts;
During various commercial transactions;
When purchasing goods and services;
When exchanging confidential information;
To register insurance policies;
To protect property rights as well as to transfer them to a new owner;
Personal data management;
To ensure the security of intellectual property;
Assist in creating a archive of documents.
It uses complex mathematical algorithms to link individual pieces of information to each other. Each subsequent data connector is connected to the previous one. It is assigned a unique signature timeline.
The addition of a block must be confirmed by all network participants. This procedure automatically updates the registry of all devices. The appearance of each link seems to cause data to appear in all databases.