Are you on blockchain?
What is a Blockchain?
Blockchain is a constantly growing decentralized public ledger (database) on the internet, to which data can only be added and read, without the possibility of being deleted or modified.
This public ledger consists of blocks in which multiple transactions are recorded. Increasing linearly, each new block joining the previous one as a chain it received the name Block-chain.
Who are the miners?
Verification and new information written onto this public internet ledger called the Blockchain is made by computers whose owners are called “miners” and who get rewarded by a small commission on each blockchain transaction in exchange for putting their computers to use.
What is a Bitcoin?
Bitcoin is the first practical application of Blockchain technology created in 2009, in order to store and transfer value freely, securely, globally, pseudo-anonymously, peer-to-peer, in a transparent and decentralized way on the Internet.
Byzantine General - consensus without central authority
Suppose you are a general who wants to conquer a castle. If you suddenly attack it with your allies and surround it, you can conquer it. Otherwise you will be overcome. How do you make sure all your allies:
– received the message to attack simultaneously
– You have all arrived to a consensus to act (attack)
– You removed all the spies sent find out about the attack
– You have excluded traitors or compromising generals that could break your plan
– You can not give orders to the other allies who have the same rank as you and do not recognize your authority over them (without any central authority)?
This is a mathematical problem proposed in 1975, considered unresolved until Blockchain technology proved to be its solution.
Advantages of Blockchain technology
Reduced, close to zero costs in transferring digital values and properties cross any borders
Transparency, predictability, immutability, and determinism in transactions – the code is law
Recording and maintaining a permanent, secure, and publicly verifiable record of your digital and physical properties
Purely voluntary interaction, directly between participating members, verified by the perpetuation of the public register
Freely and publicly verifiable, transparent and duplicable technology
Open Architecture, neutral towards anyone in participating, innovating, accessing and to use at will
Completely neutral architecture, none of its members being above or below the others within the network
Implemented ecosystem makes it profitable for all participants to behave fairly, discouraging through costs and exclusion those who try to cheat
Accountability and verification even under conditions of anonymity of all participants
Direct, peer-to-peer transfers approved by network consensus, "trustless", without a third party
Creating rarity and uniqueness in an infinitely duplicable digital environment
Censorship resistant architecture, resistant to compromise, spamming and cybernetic attacks
"Blockchain is the biggest opportunity set we can think of over the next decade.
"Blockchain is a technological tour de force.
"Anything that you can conceive of as a supply chain, blockchain can vastly improve its efficiency - it doesn't matter if its people, numbers, data, money.
"Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential.
"How do we create new value? You create value by running services on the blockchain.
"Bitcoin is just one example of something that uses a blockchain.
"That's a term that I really like - permissionless innovation - because anybody who has an idea and has a solution can tap into or can leverage the Bitcoin blockchain.
"I've been in a room in Silicon Valley where on the wall they have 160 industries they think blockchain can disrupt. We picked six of them to focus on.
"There is an opportunity to recreate the financial world as we know it in the parallel universe that is the blockchain. We are writing rules for this whole new universe.
"The blockchain symbolizes a shift in power from the centers to the edges of the networks.
Basic information about Blockchain technology:
A very simple program released on a blockchain that runs itself on the basis of the pre-programmed conditions at its launch.
The main advantages are the free, fast and low commission access for anyone in the creation of one (or more) blockchain addresses without any necessary documents and that blockchain transactions are direct, peer-to-peer without any involvement of any third party, financial institution or supervising authorities, as well as the low cost transfer of any value or property from one end of the earth to the other, at any time, on any device connected to the Internet (or mobile services) in just a few seconds.
Blockchain technology has already revolutionized transport, financial, notarial, medical industries and has even been implemented in some governmental sectors, demonstrating the potential for even replacing many segments in the near future. Blockchain will do for value transfers what the Internet has done to the fields of communication over the past 20 years.
Given that anyone can create an address on any public Blockchain, even if they are disconnected from the internet, this is without a doubt and possible, initially. It then depends on who, how and where they are trading using that certain address.
At present, there is no specific legislative framework in Romania for cryptocurrencies, holding and trading these being considered neither illegal nor regulated, but without a doubt taxable.
Like other inventions, Blockchain technology is based on previous innovations such as recently invented mathematical and encryption methods, peer-to-peer protocols, based on which in 2009 a person (or group of people) under the pseudonym Satoshi Nakamoto published the first version of the Blockchain protocol in the form of open source code on the Bitcointalk forum. By its first practical application: the cryptocurrency and payment system called Bitcoin.
There are two categories of Blockchain: private and public. Private Blockchains are controlled solely by their creators, while public ones are controlled by a decentralized privately-owned “governing” system embedded in the code by user vote (who also host the network nodes), miners who grow the blockchain and provide security and also developers who improve the code.
Transactions are confirmed by “miners” who after verifying the validity of the addresses involved in the transaction as well as the availability of the desired amount to be transferred plus the miner’s commission, will then record the transaction onto the next blockchain block.
Variations are multiple depending on how simple, free or secure you want to create an address and on which Blockchain. We invite you to visit our Resource and Tools page for each of these variants.
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We have all the resources for you to learn what blockchain means and how to use it
Visit our Tools section to start using blockchain tools.