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Crypt currency. What is blockchain?

Date: 31 July 2018, 19:07

Crypt currency. What is blockchain?

Many people do not keep up with new inventions or discoveries in the field of Internet technologies. Is it worth ignoring the very new thing that can soon substantially change our whole life? Of course, I mean the invented new currency - the crypto currency.

I propose to understand what it is and why it is so important now. New time - new technologies and discoveries.


Crypt (Crypto currency)


Crypt (Crypto currency) is a distributed system for exchanging and transferring digital banknotes, i.e. digital money or electronic means. The dispersal of such a system is sometimes called a bold and new word - "decentralization". The main advantage of crypto currency is security, which is based on the means of cryptography and encryption. Cryptography is a science whose main task is to study new methods of ensuring security, preserving the completeness of data and verifying the authenticity of the object.


Blockchain


Each electronic currencyis based on an algorithm developed by a well-known programmer - Satoshi Nakamoto.

Blockchain is a distributed registry system, all information in which is written into separate blocks that are added together into a single circuit. Hence the name, translated from English as a chain of blocks. Under the information contained in each element, we mean: block number, recipient and sender of the transaction, its amount, date and time. Each element has a limited amount of memory, i.e. the size. Once one is filled with information a new one is created, and it contains a hash, i.e. information from the previous. That's how they are connected in a chain. It turns out that even from the largest chain of blocks in the end, you can go to the information contained in the very first block. Thus, all records of operations for transferring and receiving crypto currency by different users are stored in a chain of blocks, which binds them together and is constantly updated. A new operation is a new record that will fall into a new block. But the new block will record not only it, but also a number of other new operations.

block chain

The sets (chains) of all the blocks are located on different computers, so the system is almost impossible to crack. The system repairs itself if some of the blocks are lost. Thus, it is impossible to make a block change or create a fake block. Features of the block system are such factors as transparency of transactions and their low cost, complete anonymity of users, high speed of operations, resistance to cyber attacks and hacking.

With the advent of this system, many began to predict a worldwide change in the payment algorithm. It is because of the peculiarities of the blockchain that it became possible to develop new crypto-currencies.
In fact, we can see the world economic revolution, as some countries have already stated that they are not against reworking the already existing procedure for recording and recording financial transactions.

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