Innovative technology of cryptocurrency "Blockchain"
In understanding cryptocurrency, the “block chain” is a highly important technology.
People who are considering investing in cryptocurrencies should understand how the blockchain works.
【What blockchain is: a distributed ledger technology, or a distributed network. The blockchain being developed in the R3 Consortium below uses Amazon.com, IBM, and Microsoft cloud infrastructure. Not only R3 and the Linux Foundation, but USAA has also established a research team.】
Reference — Wikipedia
The above text is from Wikipedia.
Distributed Network
A distributed network is, for example, a system without a central administrator as in the traditional centralized banking system when making transfers.There is no administrator.
In other words, users on the blockchain monitor each other and keep the network running.
In other words, when sending cryptocurrency between individuals,the fees can be incredibly cheap.
How blockchain works
On the blockchain network, the online network is connected, and exchanges can occur within it.
On the right side of the diagram above, there is a picture of the network being connected online.The sign B means Bitcoin.
On the left side is the mechanism when cryptocurrency is transferred between individuals.When transfers are made between individuals, there are people who verify the transactions, and finally the cryptocurrency is paid as a reward to that person (in the picture, a building). However, it is characterized by being able to conduct transfers at much lower fees than through traditional banks.
Fees vary by country around the world. In some countries, fees can be as high as 20% to 40%.
The person who checks the transactions confirms that they are conducted properly, and then writes them to the blockchain. After that, the transfer is completed.
Fairness and Transparency in Technology
Another major feature of the blockchain is that it allows viewing all transactions. It is truly a characteristic befitting a distributed society in which everyone monitors each other.
There is an enormous amount of data, but you can actually download and view all transactions on the blockchain. Transactions can be viewed by their numbers, showing what kind of transaction it was, so personal names are not included.
And those transactions cannot be tampered with.
When there is usually an administrator, the administrator may tamper with it. Although unfortunate, it is not impossible for an administrator to deliberately reduce amounts in pension issues, for example.
Conclusion
Blockchain is currently a very much watched technology,and you can hear plans for it being adopted by companies and governments on a daily basis.
Suppose you live in a country where the government cannot be trusted. If corruption or bribes are rampant among lawmakers, would you feel secure depositing your pension money with that government?
Furthermore, in some countries, wars with other nations, coups, or an unstable regime can cause the national currency to lose credibility and its value to fluctuate greatly.
In such cases, blockchain may play a major role in the near future.
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