My name is Anonymous. Let us head straight to the article.
Shortly after the 2007 stock crash, a white paper emerged from an unknown entity, person or group calling themselves ‘Satoshi Nakamoto’. In this mysterious whitepaper, a new financial system was discussed. it was to use a digital cryptocurrency coin. It was open to people being sick of centralized economic systems and saw this system for doing better things. The technology invented to power this system was called as ‘Blockchain’. And nakamoto’s paper was its grand unveiling.
Blockchain is the underlying technology behind cryptocurrencies like bitcoin, ethereum, etc. But its uses go far beyond that
“Blockchain is a continuously updated record of who holds what”.
These records are split into linkblocks and then secured using cryptography. The cryptography part just means that you could be sure about your records this is dubbed as automated trust or trust inherently built into the system. The list of records known as distributed ledger is a decentralized network available for everyone to see and verify. In addition the Blockchain is tap evident and unhackable due to its distributed nature. Everyone knows if the block is ever messed with because it is rejected by the system. Blockchain has a strong perception build around the cryptocurrency;
But the Blockchain has far more applications than cryptocurrencies which is not less than a revolution. Blockchain is referred as the “Next stage of internet “by many.
Let me break it down, Own current Internet is a source of copying and distributing information, video, email or data all of these are copy, for example if you are watching a video on YouTube, you are watching a digital copy of the original one .But what if we take this further to the next stage .Our assets provide us real value like contracts, house, bond, money or digital identity, the problem is that you don’t want these to be copies. You can’t send 5000 $ still yet still having the original 5000 $ in your pocket. This is called as the double spending problem by cryptographers. Despite the name it means problem of having two digital copies that should have only one unique identity. The cryptography element of the Blockchain enabled it to be the first technology of its kind to solve the double spending problem. Now for the first time we can build a new stage of the internet based on real value and this partly why this is such a big deal. So where can the Blockchain be applied? The answer is where there lies high possibility of frauds, middle man etc.
Blockchain is also used to do heavy international transactions which reduce settlement times from 2 days to mire 15 minutes by taking away the middle man. Bitcoin can do 10 transactions per second while VISA/MasterCard can do 80000. But researchers are looking to increase the block size which would cramp up the number of transactions to 400000.
Will be continued to part 2….
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