Modern cryptocurrencies have riveted serious attention.Contrary to the expectations of the developers, the general interest is explained not by the technology itself, but by the commercial results of the project. Studying the progress of bitcoin, network users often forget the history of the blockchain. This is precisely the digital platform that provides conceptual opportunities for the safe, fast and inexpensive handling of a new form of cash.
The starting point for creating alternative systems to support digital transactions was banking. Products of credit institutions today leave much to be desired. High cost of service, provided that customers already carry money to the bank. In addition, financial companies do not disclose the technology of client applications, but at the same time the level of their security remains very doubtful.
Blockchain in theory and practice provides users with the following functionality:
- Storage and transmission of user data in a decentralized data area. A single data center does not exist;
- Client identification based on secure encryption protocols;
- Exclusion of intermediaries in transaction history;
- Access to the system is free;
- The highest level of security is ensured by the total capacity. In order to destroy or hack the platform, it will require the joint participation of each user, and there are tens of millions of them.
How it all started
Initially, the decentralized exchange of user data technology was created for the functioning of the Bitcoin cryptocurrency. The breakthrough of a new product during the launch was equated to the creation of the Internet. The advent of the blockchain inspired hopes in citizens who increasingly lost confidence in traditional banking products.
An alternative field for conducting transactions on the network excludes such intermediaries (authorizing persons) as the state, officials, lawyers and accountants. An additional incentive for the manifestation of interest was the practical absence of commissions (or a minimum amount) for making transfers.Note. To date, the creator of the blockchain (translated from English as “block chain”) is considered to be a certain Satoshi Nakamoto, whom no one has ever seen.
How the platform works, what is interesting in other areas
The advent of Blockchain has opened up incredible scope for other developers. The technology itself is open, allowing each participant to participate in the process of improving and strengthening security. The system has an algorithm for conducting a self-test every 10 minutes. Thus, it is impossible to erase or replace recorded transactions, as this will require access to the wallet of each participant.
Currently, the blockchain is interesting for representatives of various fields. Bankers see the technology as an opportunity to organize a new and safe corridor for conducting client operations. Government authorities saw in the cryptoplatform an excellent opportunity to store cadastre data, because the blockchain is nothing more than a distributed registry. Using the platform, any user can transfer information to another in an encrypted form, without fear that his information will be intercepted and used by attackers. The lack of local storage completely eliminates this possibility.
Blockchain world-class projects:
- Russia is a pilot project to develop a platform for Rosreestr. The Housing Credit Agency and Vnesheconombank were involved in the work. Sberbank is already participating in a joint project with the Americans on the creation of a platform for international interbank settlements SWIFT;
- In the United States and Brazil are testing a system that allows you to identify a person;
- Finland has found application for a refugee identification platform;
- Obtaining citizenship through the portal of public services is implemented on blockchain technology.
The creation of cryptocurrencies has allowed the world to rethink existing systems. Just for supporting the capabilities of users around the world. Blockchain does not need translation into other languages, it is safe and easy to use. Inexpensive and not requiring the formation of a contractual basis. All this is a thing of the past.
What prospects await Blockchain
Saying that the future lies with the platform is already incorrect. It has already come.In support of this, one can note at least an incredible increase in the capitalization of almost every new cryptocurrency. Any tangible deviations in the value of bitcoin are considered a world event published.
Until recently, many stock exchanges did not accept bitcoin and other cryptocurrencies as a financial instrument. Already today, the introduction of currency pairs not only ensured a significant inflow of capital, but also stimulated the creation of specialized trade resources that do not need regulators, presenting a safe investment field.
Digital Trust Format
Modern society more than ever needs to ensure a high level of trust. The traditional format of cooperation is paper contracts, with which you can defend your rights in court and other instances. In the future, the blockchain will allow to exclude intermediaries and other persons from the chain of counterparties that not only complicate the trading process, but also contribute to a rise in the cost of products reaching the consumer.
Virtual space is more suitable than ever for making and supporting exchange processes.
The digital trading format has the following advantages over traditional exchanges:
- Intelligible conditions;
Despite the fact that Ethereum is a similar and at the same time completely different platform, due to the implementation of this project, the functionality of the blockchain has increased.
Full provision of contracts with tools such as digital signature, delay before shipment, formation of transaction history and much more. All this adds to the usual trade not only alternatives, but also jeopardizes established processes conducted more in the traditional style.
The concrete results that have been achieved through widespread adoption already make it possible to judge possible changes in the future. The main obstacle to the process remains the institution of statehood, which already today is calculating its losses due to cheaper transactions and getting out of the tax regime. Of course, blockchain will stand, as WebMoney did. They managed to prove that not so much money is circulated in the system as title characters, which are not sold, but are exchanged for fiat means of settlement.
In any case, those who are used to dictating their conditions to the inhabitants of the planet are seriously thinking about the potential of the “chain” of records. The question of trusting tangible material values, fundamental for the state and all mankind, remains open. Some countries have already announced their withdrawal from the conservative regime of banking support for the budget, since the services of credit institutions are simply not profitable.
Until recently, Bitcoin was considered a surrogate currency in many parts of the world. Already today, the issue of implementing projects on the Blockchain platform is being discussed within the walls of the Government. The example of neighbors was followed by Ukrainians, who lifted the ban on the circulation of digital currencies on national sites.
The most important thing is quality and speed
The need to increase capacity for the extraction of new coins spontaneously puts forward new requirements for progress. Quantum computers, electric cars, and other market innovations are just the beginning. The main tasks that face almost any modern project are increasing speed and improving security due to the release of updates, the emergence of new functions and practically applicable capabilities. Blockchain is a true technology of the future, on the basis of which we will soon see new creations of developers. It is hoped that the digital platform will provide functionality not only to business representatives, but also significantly improve the life of every inhabitant familiar with the Internet.