How are bitcoin transactions traced
Build a token bridge The world has changed a lot and continues to transform. He is not the same as he was 2–3 years ago. Technology is increasingly influencing our lives. One of the strongest influencers are cryptocurrencies and blockchain. They have declared themselves quite loudly, and according to Coinmarketrate.com , they are at the peak of popularity.
What is the future of blockchain and the world of cryptocurrencies?
If we talk about the blockchain, then it can be thought of as a kind of database. The big difference with what we know is that the data is not stored in one place (for example, on a central server), but in various blocks that form a chain and are decentralized .
In practice, new information is added to the existing chain. This forces all data to follow each other.
Blockchain evolution
Blockchain was originally designed to improve the existing monetary system.
Essentially, the goal is to reduce the power (and control) over our money from the powers that be (banks and governments).
What does this mean in practice? Let’s see this with an example of one event. At the end of 2019, Lebanon is experiencing a severe financial crisis. The government (and banks) decide to drastically limit the issuance of money. In short, they prevent their citizens from accessing their money.
To combat such phenomena, people have created a decentralized currency — cryptocurrency (which is also a virtual currency).
After the concept of virtual currency (the ability to pay and receive money), the concept of creating contracts (smart contracts) appeared. It is no longer only about monetary transactions, but also about EVERYTHING that can be the subject of the contract.
In practice, we are surrounded by contracts: car leasing, mortgages, telephone subscriptions, and so on.
A bridge smart contract is a program that is stored on a blockchain and works when certain criteria are met. Thus, he has the ability to enter into contracts between 2 (or more) individuals. And all this without the need to turn to intermediaries.
In practice, you can buy real estate in some countries with cryptocurrencies and get a certificate of ownership without going to a notary (common steps). The advantages are: cost reduction, speed of execution, contract traceability, etc.
Is blockchain a lever for a technological revolution?
This question is worth asking when we see the speed of blockchain adoption in companies (as well as in governments, public institutions, etc.).
Why is this new technology so widely used by businesses?
Because the proposed solutions are numerous and important. For example, they can improve security, maximize the efficiency of certain services, optimize many operations, reduce costs, and so on.
Why isn’t it available everywhere yet? Let’s face it, at the time of this writing, blockchain is still a recent technology that is still unknown and difficult to understand (because of its complexity). However, with increasing adoption, we (consumers/end users) will be more and more concerned about this technology.
Which industries are already using blockchain?
voting authentication, record keeping, internal security, document forgery prevention…
Hospitals and healthcare: database security, information sharing, interdisciplinarity (eg patient records), ….
Real estate: authentication of transactions, optimization of procedures, …
Education: access to information, authentication of diplomas, approval of programs,
for user identification, implementation of crypto payments, etc. Retailers: reducing the number of intermediaries, speeding up payments, etc.
Logistics and supply chains: linking sales, storage and supply data, etc.
Agriculture: the effectiveness of monitoring plantations and crops, …
IT security: data encryption, …
Humanitarian organizations: tracking of donations (and their use), transparency of supported goals, …
Cryptocurrency exchange platforms: low cost and fast transactions, low exchange rates, …