Blockchain Technology – Is it revolutionizing our world?

Blockchain technology – has been on everyone’s lips for some time now. Experts even see it as a revolution in the financial sector. But when experts talk about “The next big thing since the emergence of the Internet”, a layman usually only understands railway station. Since this may play a major role in our world, it is time to take a closer look at this topic in order to understand these changes.

What is a Bitcoin code?

A block chain is a database whose integrity (protection against subsequent manipulation) is secured by storing the hash value of the preceding data record in the subsequent data record, i.e. by cryptographic chaining. The procedure is the technical basis for so-called Bitcoin code, but can also contribute to the improvement/simplification of transaction security in distributed systems compared to central systems.

In order to really understand the blockchain technology, you basically have to start with the bitcoins. Without Bitcoin there is no blockchain. The term Bitcoin refers to a new currency that, unlike conventional money, has no physical object or equivalent. In essence, the development of the financial market goes one step further. If it was initially the case that a currency must always represent a value in itself, as is the case, for example, with a gold nugget, then we went over to today’s ordinary paper money. The paper of money has no value in itself except for the one we give it. Starting from this money, one has now increasingly arrived at the convenient card payment, in which basically no physically present money changes hands.

If one simply goes one step further in one’s thinking and leaves our accustomed economic structure, one ends up with the Blockchain Revolution. This is basically the intermediate step of the bank and the necessary card cut. The Blockchain Revolution allows the immediate exchange of currency. In order for this to work, however, users need a kind of control instance. Here, however, the conventional bank equipment should be dispensed with. And at this point this new technology comes into play. It allows the safe exchange of Bitcoins. The individual bookings are recorded in the blockchain and thus fraud and manipulation are no longer possible. Blockchain technology thus replaces the old bank with its system, which is susceptible to manipulation.

How does a Bitcoin trader work? – A simple explanation

Since Bitcoins no longer have any real equivalent in their hands, this currency needs a complex and secure Bitcoin trader review in order to function in the long term. Blockchain technology is such a complex directory. It is basically a permanently growing text file that is securely encrypted. All transactions are listed in it. These transactions are grouped into blocks every 10 minutes. The generation of a block is in turn called “mining”. The blocks hang together and form a chain, i.e. a “chain”. The blockchain is thus a list of different transactions that are linked in a chain. This chain is constantly updated.

Technically it is a log file. A Genesis block sets the starting point of the file. Starting from this block, all further connections are recorded. Each connection is a simple peer-to-peer connection. This means that no third instance like a bank is necessary. This eliminates delays in the transfer and there are no additional costs for another instance.