My next article is about business and finance.
The eighties of the last century were marked by the scientific and technological revolution brought about by the invention of personal computers. Then the volume of production of PCs increased annually by hundreds of percent. A wave of rampant computerization covered the entire globe.
Source Today, we stand on the threshold of the next IT revolution. It generated a great invention, a completely new kind of money - cryptocurrency, and using new software technology called blockchain. Both of these achievements will completely change the financial world in the coming years. And not just financial. We must be ready for it!
What changes have occurred in the financial system of the world over the last century? If prior to the First World War, the vast majority of countries use currencies that are convertible into gold, in the middle of the last century, the national currencies of the world has had no official value of the commodity. Such money, imposed by governments to their populations of different countries, called fiat or fiatnymi. Every state requires its citizens to use notes and coins as a means of payment in its territory. And the commodity value of the money is dictated by the state. On their own bills and coins of any value other than numismatic not represent. This is particularly evident when the denomination of the currency is done.
The cheaper the production of new money, the better for the country. After production protected against forgery of money - a considerable item of fixed costs of any state, and this article always seek to minimize.
So, any banknotes, including the dollar and the euro, in itself worthless. That is why, when the government loses the confidence of its people, the citizens of these countries are seeking to change its currency more reliable. And when it is difficult, most invest their money into commodities.
The birth of a new kind of money, cryptocurrency occurred relatively recently, in 2009. First cryptocurrency called Bitcoin. Bit - a unit of information, zero or one in the binary system. Any decimal or letter of the alphabet can always be represented as a series of ones and zeros. Coyne (English Coin.) - Coin.
Special program, generating bitcoins coins, arranged so that it can not produce them in excess of a given number. In this case, the amount of bitcoins is limited to 21 million. Pieces. Each coin is unique and represents a certain numerical set of satisfying the special formula laid down in the program.
Such "coins" do not wear out, to keep them safe and do not need guards. They are not subject to inflation. They can not be faked! The money is transferred from one owner to another is practically free. Cryptocurrency can be considered a perfect example of money.
Pioneer cryptocurrency Bitcoin has become a kind of training ground or a small experimental system really working. It is named small because the current capitalization of Bitcoin is about 10 billion. Dollars. These states have a lot of billionaires. The amount on the background of world trade is really small. However, the value of this financial experiment huge!
Cryptocurrency Bitcoin has opened space for the practical use of all cryptocurrency as Ethereum, Litecoin, Dash, `Steemit and others.
Returning to Bitcoin. Since bitcoins generation is installed on thousands of computers, a new "coins" are systematically generated on different computers. In order to fix the fact of the appearance of the new coins and it supplies a particular master was invented procedure blockchain. This procedure allows you to store information about all appeared coins and transactions with them. It creates a unique database, stored on all computers participating in the coin generation.
blockchain main idea is that one and the same database stored simultaneously on a large number of computers, it is invulnerable to correct its attempts. Trying to replace at least one character in the database would require hacking the computers of all who keep this base, which for obvious reasons can not be!
Just imagine what prospects open to the idea of humanity blockchain! It will allow banks to the world many times to reduce the number of staff. It will find application in areas distant from financing activities. For example, the procedure blockchain integrated within the global education system, will allow each student to have all the information: he passed examinations and offsets, which were the theme of the protection and term papers and dissertations.
blockchain idea will dramatically reduce the ranks of officials, notaries and the various offices engaged in the issue and execution of documents. Prospects are fantastic!
The global banking system has had to adapt to the changes in the mentality of the customers. Many banks are combined into groups to jointly explore the use blockchain in their activities. But even the simple idea of digitizing the maximum of its services in order to reduce their own physical infrastructure, not all heads of banks like. However, new ideas of IT technology has pushed the bankers to change their outdated mentality.
In the banking sector there are the first leaders who work with customers through social networks such as Facebook. Thus, the Polish BRE Bank came up with a new architecture of digital social bank. The savings from the reduction of its physical infrastructure, the money he had sent to carry out large-scale advertising campaign. The success exceeded all expectations: over 75% old customers of the bank willingly switched to the new platform. Such transformation in the coming years will be massive. And we are witnessing dramatic changes take place such that we never dreamed of!
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