Blockchain
What means Blockchain? Who invented Blockchain? When makes Blockchain sense? Blockchain simply explained etc.
Bitcoin=Blockchain?
Press here
Blockchain belongs to Bitcoin
The block chain technology (decentralized public database) gives the majority the power to manage the verification of the blocks (mining). The block chain is the infrastructure for Bitcoin to function and be secure.
One block every 10 minutes
Press here
It also works faster
In the Bitcoin Blockchain, approximately one block is generated every 10 minutes. This means that the transaction is only stored forever in the block chain after 10 minutes or 6 confirmations. Other block chains are faster.
Hashes concatenate the blocks
Press here
Chaining secures the block chain
Chaining the blocks ensures that no block is manipulated. The concatenation is done with so-called hashes, which like a fingerprint concatenate each block with the previous block.
The decentralized structure of Blockchain
Press here
Bitcoin distributed on nodes
The block chain technology (decentralized public register) lets the Bitcoin database run synchronously on all nodes. The miners verify the transactions via the Proof of Work consensus.
Blockchain Definition
What is blockchain?
Blockchain means blocks that are prepared together like a chain, hence the name Blockchain.
These blocks are filled with data (Bitcoin transactions) and when the block is full, it is closed with a hash and this hash goes into the next new block and so each block is chained to the previous block.
This is why blockchain technology is so secure, because the chain contains all transactions and is linked by the proof of work. This chain cannot be manipulated, because the effort would be greater than the profit. it should be at least 51% of the nodes control and that is simply impossible. Most importantly, Bitcoin would be immediately worthless if the block chain was not secure and any attacker would make a huge effort to get the Bitcoins (if it were possible at all) and then they would be useless because nobody would use Bitcoins anymore.
Security
How secure is the blockchain?
Since with the Bitcoin network meanwhile thousands of Nodes go through and keep the network on running, Bitcoin is surely the safest Kryptowährung at all. There are now many different block chains with different consensus algorithms, as the proof of work is very energy-intensive.
Bitcoin production (mining) now requires so much electricity that it could supply a small country. But on the other hand, there is a true value in Bitcoin and it is not just a digital currency on the screen. It costs electricity, miningequipment, infrastructure etc.
Date of invention
How long has the blockchain been around?
The blockchain technology was founded by Satoshi Nakamoto in 2009.
There have been previous attempts to construct similar databases such as Hashgraph, but the Bitcoinblockchain is really unique because it is a decentralized database where the majority decides by consensus proof of work and where you cannot cheat because the effort would be greater than the return. Double Spending can also be prevented.
Reason for use
When does blockchain make sense?
The Blockchain (decentralized public Rregister) certainly makes sense everywhere where one wants to do without a central power instance. The block chain is designed so that the transactions are stored decentrally. This enables a secure, transparent and irreversible transaction history. The blockchain is already used in several industries such as supply chain, financial transactions, etc.
The Bitcoin block chain is a public blockchain, like most crypto currencies. But there are still private blockchains and consortium blockchains e.g. of Hyperledger. There the parties know each other, which is not the case with the public blockchain.
With the Bitcoinblockchain you need a wallet that contains a PrivateKey (comparable to a password or PIN) and a public address. You may give the public address to anyone to get your Bitcoin, but you must never give the PrivateKey (usually a random 12-digit word sequence) to anyone! Keep it on a piece of paper and put it in a safe place or better in a safe.
Conclusion Blockchain
What does the future of Blockchain and Bitcoin look like?
Block chain technology is finding more and more areas of application, especially in the area of smart contracts (contracts that execute the code and lie on the block chain) there are many business opportunities.
The Ethereum (ETH) Blockchain, the second largest crypto currency after Bitcoin (BTC), is the leading one. There are opportunities to conclude contracts, which are captured by the code and automatically executed via the Ethereum Blockchain. Ethereum’s block explorer allows you to view a wide variety of transactions.
Example: Two people make a bet on the weather. One person says that it will rain tomorrow and the other person says the opposite. You set up a Smart Contract with these claims with a bet from an ETH and load the contract onto the Ethereum block chain. The next day it rains and the person who bets that it will rain automatically gets an ether credited to his ETH wallet. The other person who was wrong will have an ether removed.
This is a trivial example of how smart contracts can be used. But in the financial industry, more and more smart contracts are being used to create automated contracts that are irreversible, cannot be manipulated and are self-fulfilling. This will cost some people their jobs, since many tasks are still being processed by humans, where sooner or later Smart Contracts will be able to handle them.
Billions in savings if the banking sector would use Blockchain
Statistics Crypto
- Number of Bitcoins produced from 21Mio 88%
- Share of crypto currencies with Proof of Work consensus 75%
- User of cryptocurrencies in Nigeria 32%
- Global electricity of Cryptocurrencies in the world in future 5%
