Life in a rapidly developing society is very interesting, vibrant and dynamic. Isn’t our life a confirmation of that? Every day we learn something new, oh, this information age.
But quoting Kiyosaki’s book “Daddy Big, Poor Daddy”: “The more I learn, the more knowledge I need”. But we will not talk about knowledge, but about what Kiyosaki wrote about: financial literacy, money, in fact, the use of his intellect for your well-being. After all, happiness is not about money, but about the amount of money
Smoothly turning to the topic of our conversation, it is necessary to note that time is the matter that flies immediately and never looking back. It’s a pretty banal statement, but it’s just the same and it’s not the same yet. From generation to generation, the attitude towards money has changed in society, cooperation with banks, and the currency itself has changed with almost every authority.
It’s all a story that soon led us to digital money, or rather to cryptocurrency. And who would have thought that this would happen in the 21st century? Blockchain is a powerful proof of that.
What’s a Blockchain?
Blockchain is a basic term that you need to know if you want to understand the mechanism of virtual money exchange. In general, blockchain is the foundation or foundation on which Bitcoin stands. The very name of blockchain already tells us about the functions of this mechanism. “Block” from English is blocks, “chain” is “chain”. Together it is a chain of blocks. But what does this have to do with blocks?
Blockchain is a mega-brain that stores an unlimited amount of information. Blocks are its gyrus of memory, which cannot be replaced or replaced. Because the mechanism checks the previous data very carefully and if it sees an error or fraud, it will simply ignore the execution request.
And now it’s easier. Blockchain is a huge notebook that stores information about transactions, deals, and contracts within the network in a cryptographic form. Blocks also form a strict chain in order to create a new block, you need to gradually read the information about the old blocks.
Blockchain is often compared to torrent and P2P technology. The existence of blockchain is only possible if there are participants who are all equal in the system. Therefore, any transactions are conducted cleanly, directly between subjects. In short, money does not belong to and is not managed by a single person, group or state, all are equal here.
It’s also worth talking about the chains, because they’re divided into two types:
- Public blockchain – here we have the equality we mentioned above. Everyone can add and read information.
- Private blockchain – there are restrictions on writing and reading files. You can also set priority nodes.
Who’s the genius?
Ooh, this story is covered in darkness. Maybe that’s why I like it so much. Many people claim that blockchain and Bitcoin were invented by a certain Satoshi Nakomoto. Behind that name can be both a person and a group of people.
Blockchain technology was created in 2009 and until 2011 there were still some traces of Nakomoto in the network. But after that, he went underground and no longer announced, except for a few other Satoshie around the world that expose the genius of every autumn.
What is only Craig Wright worth? Craig is an Australian businessman and experienced programmer who simply, in my opinion, wanted to attract popularity. As you can see, he did it. Wright even gave proof that he was Satoshi Nakomoto, but that only made people laugh.
He gave a description in his blog that can be made by any person who works with Bitcoin. Gorenakomoto was just a tax evader who just wanted to pay off his debts.
And in June 2018 on Amazon there was a book written ostensibly by Satoshi Nakomoto. In a network there is even a 20-page fragment. And it is not even just a book, but a series in which there will be a biography of Satoshi and a story about the appearance of Bitcoin.
The name has been encoded in a puzzle, the Japanese language Honne and tatamae, which means, in translation, approximately: duality. The author also presents an e-mail correspondence with Harold Finney, who died in 2014 and bequeathed it to the public. So it is available to everyone. Who knows, maybe it is Satoshi.
The story is much simpler, who has been harassed by everyone, but he denies that he is Satoshi himself. Also a very interesting version about Chinese and Russian hackers. There are people who have been trying to find Satoshi since 2009 and they are being abandoned around the world.
They say he was born in Japan, but he lived in America because the whole program is written in English. Wherever the traces of these searches are taken, in five years, Hollywood will make a film about the legendary or mythical Satoshi Nakomoto. But even if Satoshi exists, in one person or plural, this character has done the right thing, that does not give himself away.
Who needs problems with the state. Especially since international services have long been interested in them. I am more than sure that he is always under our noses. And who knows him, maybe you even saw him!
How does blockchain work? What are the advantages of blockchain?
To begin with, blockchain is a system that is constantly growing. Blockchains are getting bigger and bigger every day. With the help of peer-to-peer networks, all blocks are separated between participants. To each block is added hash sum, blocks stand in a certain order and create a chain.
A very important point is the formation and closing of blocks. Each block has a key and until it is decoded, the block will not close. Miners are engaged in decryption, with the help of powerful equipment, they select the hash and for this get their share, in the form of cryptocurrency.
Tapscott Don and Tapscott Alex in the book “The Blockchain Revolution. How the technology behind Bitcoin changes money, business and the world” tried to explain the technology in simple words, that’s what it turned out to be: “Bitcoin or other cryptocurrency is not stored in any file. Transaction information is in a global, publicly accessible database, Blockchain.
It is the confirmation and acceptance of this large P2P network by the operation. The whole chain is distributed: it is supported by computers around the world. There is no central server that can be broken or hacked. Blockchain is public and very secure at the same time because it uses encrypted data.