The internet has also digitized our coins and wallets. Economies and currencies are changing. Now the most profitable investments are not cars, real estate, banknotes, gold, but Bitcoin and other cryptocurrencies. In today’s article, we will tell you about the Blockchain technology, which forms the infrastructure of many of these digital currencies.
Blockchain is a digital ledger
We can briefly define blockchain as a distributed database. Just as there is a fixed database where the data of each system is kept and provided by the servers, this is the case with the Blockchain. But it is distributed. Blockchain operates independently of a center. Thus, all transactions on the network take place between individuals without the need for an intermediary institution.
Each unit of this digital ledger is called a “block”. These blocks can never break the order in which they were created, and they are arranged as such. Think of it as the pages of the notebook. Just as you cannot change pages in the ledger, it is impossible to change the rings of the chain in Blockchain.
The first project where the blockchain system was used is Bitcoin. People are a part of this system and use the processing power of their computers to exchange money in the system. In return, they are rewarded with Bitcoin.
Money transfers are safer with Blockchain
Money transfers with Blockchain are impossible to break with today’s methods, thanks to special encryption methods and high security features. For this, security measures should not be developed or quantum computer systems should become widespread. These methods are very, very unlikely in an industry with such a high trade volume.
Blockchain could replace law firms or banks
Until now, investment types have changed constantly, but legal methods and banking systems have remained constant. Blockchain is an intangible substance that consists of electronic contracts. When people learn the details of this technology, they can become their own bank manager, their own financial expert or their own legal adviser. Let’s explain this again by giving an example for better understanding;
If Person X wants to place an automatic payment order to pay his rent, it is sufficient for Person B to know the house number. Thus, the e-transfer event takes place from person to person. In this way, there is no need for intermediaries such as banks. In addition, since the transactions will take place directly between 2 people, the costs given to the intermediaries and the possibility of fraud are eliminated.
The first Blockchain was established in 2009
The first blockchain was designed in 2009 by the person or persons using the pseudonym Satoshi Nakamoto. Using this technology, he brought the cryptocurrency called Bitcoin to the virtual world. Bitcoin, which was worth 0.50 dollars in the first period, rose to 19600 levels.
The most important consideration about why the blockchain was designed is shown by the economic crisis in 2007 – 2008. Because people needed an alternative system to banks in this period.
Blockchain technology is good but cryptocurrency is bad. That’s true?
This saying is actually not true. Because such a thing cannot happen. When looking at a cryptocurrency like Bitcoin, we see the best application of the Blockchain system. People agree to be a part of this system to win rewards and get Bitcoin.
In this way, many people in the world are included in this network, as everyone receives their reward financially. There is a very strong distributed structure in the middle. If the people in the blockchain do not receive rewards in crypto money, they will not include the computers they have collected for thousands of TL into this chain.
Visits: 54
