What is Blockchain technology in simple words and its application

Blockchain, translated from English, consists of two words "Block" and "Chain", which literally sound like a block and a chain. They form a single name "blockchain".

Blockchain technology in simple words

In your own words, Blockchain is a database that has data. It resembles a kind of a kind of chain, continuous shape and consists of certain blocks. Such a database can be stored on several computers at one time. It should be noted that the creation of new blocks in this database occurs on an ongoing basis, each time adding to the chain. The new block contains its own group, which provides for the accumulated information (transactions) for the last period of time. These posts and their titles are always in order.

It is important to remember that transactions are absolutely any user actions that occur and are performed only on the network:

• registration of Acts of ownership;
• funds sending operations;
• purchase of various game items.

When the user has formed his transaction, he goes to the place where all transactions are waiting for a response to be added to a certain block. This process is called "mempool". When the block is formed, it goes for verification to the participants who are in this network. In the event that confirmation is received from them, then this block is connected to a certain chain (at its end). It must be remembered that the Block stores not only newly received information. It contains and stores for a long time and all previous information, only in other blocks of the chain.

Blockchain technology was first proposed by its creator Satoshi Nakamoto back in 2008. It took about 10 months to implement it and provide the technical side of the project. The blockchain throughout the Bitcoin system is a register of uniform data and information.

In the event of block copying, unnecessary costs began to appear, two to three times higher than the initial ones. Bitcoin, the first cryptocurrency , eliminated the problem of unnecessarily arising cost overruns. Satoshi Nakamoto solved the problem by dispensing with the involvement of authorities with authority and without storing the information received on one server.

How the Blockchain technology works (works)

It is worth paying attention to the fact that one cannot talk about Blockchain technology without raising the topic of Bitcoins definition. Satoshi Nakamoto released the first document based on blockchain information systems in 2008. At the very beginning of 2009, Bitcoin was offered to the society.

Bitcoin is the modern generation of currency (digital), which was created and is used today only on the Internet. It is not controlled by any body. Bitcoins are not a physical currency. They exist exclusively in books and balances stored on the Internet. All transactions (transactions) with Bitcoins are carried out using huge computing power.

Every person who wants to replenish his "wallet" with Bitcoins can start mining (extracting) them. This can be done using the computer and the networks located on it. Transactions are processed when transferring bitcoins. In this process, they become a separate payment system (digital). In short, cryptocurrency is mined, i.e. a new block is created.

One unit of Bitcoin is divided into eight digits, each of which consists of ten. The little one has the name "Satoshi".

The most basic features and at the same time important are:

• ease of use;
• decentralization;
• transparency;
• complete confidentiality.

It can be noted that even in our time, many do not distinguish between Bitcoin and Blockchain. They see them as one and the same. But this is far from the case.

Blockchain is a ledger that is open and decentralized, which records transactions between two parties on an ongoing basis. It excludes the presence of a third party in this process. This in turn underestimates the total transaction cost and is an efficient process.

During the period when there were no other terms on the Internet market besides Blockchain and Bitcoin, the definitions were used interchangeably. Every year, technologies began to develop and new and completely different chains of blocks appeared, so the concepts diverged.

Bitcoin today differs from Blockchain in the use of tokens, which were created using ledger technology.

Are blockchain and bitcoin the same thing?

The main differences between Bitcoins and Blockchains today are:

1. The purpose of Bitcoin is to simplify and increase the timing of transactions (transactions). Doesnt require any restrictions from the government. At this time, Blockchain technology represents a reliable, secure and not very expensive environment for transactions.
2. The Blockchain system is built on the principles of keeping the "Ledger". Bitcoin is also a cryptocurrency.
3. Blockchain technology is open to various changes and adjustments. It works with significant support from enterprises in various fields of activity. Bitcoin works in a limited space.
4. The blockchain system gives the participant the opportunity to freely and easily transfer funds in different currencies into shares that will be owned. In turn, Bitcoin is involved in the whole process only as a currency. Do not forget that it is in digital form.
5. Bitcoin cryptocurrency works on the basis of privacy. The owner has the right to see transactions (transactions) in his register. But it is worth paying attention to the fact that they are displayed as a set of numbers that are scattered. At this time, the Blockchain depends on the enterprises with which it works, therefore it must be in compliance with the KYC system. It provides security for companies that work with different clients and helps protect against online fraud. It is worth concluding that the technology is completely transparent.
6. Blockchain makes it possible to adapt to different adjustments, changes, and therefore serves different areas and industries. Bitcoin is aimed only at constantly reducing the timing of transactions (transactions) and underestimating their value.

Having made a comparative analysis, it is worth focusing the readers attention on the fact that both Blockchain and Bitcoin have similarities and differences. In todays digital world, all the time, every day, every hour, there are transactions that can facilitate both Bitcoin and Blockchain. It is noteworthy that blockchain technology is used much more often than Bitcoin cryptocurrency.

Basic types of blockchain

There are several types of Blockchain. The main ones are:

1. Public.
2. Private.

Anyone can join the public type of Blockchain. He can easily become an ordinary simple user, the so-called miner, the one who builds blocks. The community is responsible for the administrative work (independently). This type is familiar to many. Ethereum and Bitcoin were based on it. It does not have a specific governing body that is in charge of approving transactions.

An example of this type is Bitcoin, which is based on a shared ledger. When sending at least a few bitcoins, everyone on the network will know about it. The process is announced immediately publicly. The Bitcoin participants on the network receive a message from the enumerator and a discussion of the transaction confirmation process begins. It cannot be confirmed by a specific person. The depositor will not know who will make the decision. The main point of this type is that none of the participants is the leader. Anyone can make a decision, everyone is the same. Blockchain is an open and fully democratic system. Each participant has the right to independently manage the movement of money, enter newly received data and create contracts in a smart form. However, they retain some confidentiality. It is allowed in the Blockchain of this type to protect information that is considered especially important. Also, a user located in any country in the world can voice his point of view in this open system. There is no central authority in it that has the right to delete a given statement. It will be online all the time.

Private blockchain types are controlled and supported by their creators. They are called exclusive networks. In order to enter this network and become a member of it, you must fulfill a number of conditions that are set by the creators (organizers). Only a certain circle of persons who have the appropriate certificate have the right to build (mine) new blocks of this type. Their transactions are approved by special people:

• senior employee;
• government;
• a certain governing body, etc.

Private Blockchain users have the right to view information, but some may be hidden. In the event that one of them wants to make a contribution, then he will have the right to check and see only the information. Ordinary users cannot make any entries. They can enter data into the network, and a special person (creator) will write it down. Those. users cannot leave data on this type of Blockchain. In this form, the data also remains on the network forever.

Blockchain Benefits

It is worth drawing the attention of readers to the fact that after describing the principle of operation of the Blockchain, considerable advantages of this technology became visible. This undoubtedly makes it affordable and very attractive to a wide range of people who can invest in different areas. Blockchain technology is suitable for applications in the financial sector, and especially when conducting payment transactions at the international level. Such transfers have always been a long process and took a long time to complete. They also required the implementation of functions by a certain number of people on both sides and large investments. Blockchain reduces the duration of the transaction process and costs; gets rid of a complex information process that has a specific structure.

There are identification services on the Blockchain for collecting information. They give users a great opportunity to store information about:

1. Birth certificate.
2. Passport data.
3. Diplomas, driving licenses.
4. Marriage certificate.
5. Other identity cards.

Other personal data of the user may also be stored.

One of the significant advantages of Blockchain technology remains the use of a completely transparent system by government authorities in the electronic voting system. This gives the voter a check.

The advantage of the technology is the absence of problems with copyright in the fields: music, cinema, art, literature, etc. Blockchain will become a good helper for authors who can easily protect and confirm their rights, including the ownership of their property.

Once again, it is worth paying attention to several of the most key benefits, which are:

1. Data protection. It allows data, which may be duplicates of Blockchain participants, to be completely intact and not be able to change if it has already been entered into the block information. A specially developed specification of data protection, in no way can change the information, as well as delete it.
2. Decentralized management system. This advantage shows that Blockchain does not have one specific center or place to store. The workflow is carried out by all participants in the network and located on the territory of all countries of the world. It is noteworthy that all decisions are made by a collective method (democracy). The network is very resilient. Blockchain system is problematic to hack (almost impossible). It is not subject to censorship. The state or some company cannot manage it.
3. Transparency of executed transactions (transactions). Any user (participant) of the network has the right to see and own the entire history of transactions. Check information about even the very first deal. By referring to the history of transactions, which is stored in the Blockchain, it is possible to check the process of making a transaction made by both addressees.
4. Reduced transaction costs. In order to easily make transactions (deals) on the network, the Blockchain makes it possible to make them without the involvement of intermediaries. Users can also facilitate and simplify the verification of their transactions, reduce the time for their registration, and minimize the risks of counterfeiting and fraud in network blocks. On the Blockchain network, in comparison with banking institutions, the commission that is paid for each confirmation of a transaction is much lower.
5. The speed of the transaction (transaction). Due to the fact that the Blockchain is a peer-to-peer network, transactions are made personally between users themselves, intermediaries are not involved. All operations are carried out regardless of which country the users are in. The network does not have a specific operating mode, and it is not suspended on holidays and weekends. Always online.

All of the above advantages affect the growth of cryptocurrencies in the world, which are directly related to Blockchain technology. Do not forget that this system is the basis for most currencies on the network.

Features of Blockchain technology

The most important information, which relates to various life situations of a person, has its own place for storage. This can be done using centralized storage on special servers of private or public institutions. As you know, their frequent use can be hacked and damaged, changed, deleted. A technology like Blockchain can radically change everything in this system. The peculiarity of the technology lies in the fact that databases with information and data are stored not only on one server. It is distributed over many (from a thousand to tens of thousands) computers. Sometimes their number can reach a million. They are located in different countries and cities around the world.

Another feature of the Blockchain technology is the fact that it is almost impossible to disable all computers at the same time. If at least one remains in working order, then the Blockchain system will work, continuing to store all information.

Reliability (security) of the Blockchain

Our experts focus on the fact that it has been mentioned more than once that there is no point in trying to hack the Blockchain system and change information. In order to carry out such a thing, it is necessary to have powerful computers and technologies. It is worth remembering about the new blocks, which contain encrypted information from the previous blocks. The reliability of the technology also lies in the fact that any attempt to hack the system will be immediately noticed by other users (participants) of the network. On the way to falsification, there will be a complete encryption system that uses a digital signature. It is also not easy. It contains several keys: private and public. The public key verifies the authenticity of the signature itself. When closed, secret ciphers are created. Such special keys give blockchain participants access to any information. They are a random assortment of letters and numbers. It is this type of keys that make it possible to save all the information recorded in the chain block. The reliability of Blockchain technology is not based on verbal trust between each other, but on computations and ciphers that are calculated mathematically.

What is blockchain for?

A platform based on Blockchain technology (Blockchaina) is blocks with data that are created for general use and without a general centralized overview over the entire process. Such modern technology can be used when making transactions, storing any data, keeping records of documents. Blockchains are used in such spheres of activity as:

• transactions with various kinds of real estate;
• insurance of any kind;
• financial operations;
• registration of marriages;
• violation of traffic rules (SDA);
• logistics, etc.

In 2009, we first applied the Blockchain technology in practice. On this basis, the Bitcoin currency (cryptocurrency) was created. After that, today, a large number of the most diverse currencies have appeared.

Nowadays, the state often considers the issue of introducing Blockchain in the voting process during the election period.

TOP 10 popular projects based on Blockchain technology

Our experts draw your attention to the fact that all reviews of modern Blockchain companies were aimed at Ether and Bitcoin. But the companys data are not new today. Most of the worlds population already knows all the information about their principles of work. Now a large number of new ones have appeared, which are worth paying attention to. It is important, of course, to remember that Bitcoin and Ether are still in the lead.

With a well-defined organizational structure, Blockchain is thriving. This is thanks to the main developers and companies that do business and provide their services. The TOP 10 includes companies whose work is built on Blockchain, or rather on technology.

Experts advise paying attention to such companies as:

1. PATRON. The company that is the leader in Japan and is the most advanced. Founder - Atsushi Hisatsumi. It is currently creating a platform in the form of decentralization. They plan to do it by promoting major community leaders while eliminating all non-profit and efficiency gains. By selling a certain number of tokens, PATRON earned about $ 40 million. In this regard, it rapidly began to move into the American (USA) market, attracting the attention of the international community, which is not against partnership. It also offers its services as experts in Blockchain technology.
2. TraDove. This company is developing a Blockchain platform that will be a fast, easy, secure payment system. They will be carried out internationally between legal entities. In 2018, this company completed work on one of the best systems for placing various cryptocurrencies in primary form. TraDove is believed to have launched the worlds first form of cryptocurrency settlement between legal partners. With this, there was a demand for these currencies, which began to be used for marketing and went on sale. The companys actual revenue was $ 76 million. Relations between the members of the company in social networks are carried out using a quick search for offers for profitable deals, as well as high-level transparency. The main partners of TraDove are: Alibaba, , Amazon, MIT, LinkedIn.
3. The work of the Celsius company is based on banking operations. The platform is - the provision of loans and credits. Such types of services enable network users to earn about 5% profit when investing their cryptocurrency. It is also possible, using your cryptocurrency (as collateral), to issue a loan at 9%. This company wants to attract another 100 million people into its system who have a certain amount of cryptocurrency and become the first application in the world to do so. This is a risky step, but worth paying attention to. Celsius wants to completely replace the traditional banking system with its development.
4. MenloOne runs on a platform that builds distributed applications. They run at a certain speed, which is equal to the speed of simple web applications. In the Blockchain market, such work is innovative for work in applications. The principle of the technology is that one link, called HashGuilds, nudges other, more experienced links. Thus, it gives them the opportunity to create new informational reviews, learn about the release of more modern ICOs and evaluate them in a timely manner. This platform is managed by MenloOne employee Matthew Nolan. He is a successful Blockchain developer and good entrepreneur. The company under his leadership is distinguished by such quality as professionalism, as well as the primary location of cryptocurrencies.
5. The online trading platform is operated by Gameflip. Supports her Silicon Valley capital. Today it has approximately 3 million members (users). The company allows them to conduct transactions using a variety of digital goods. After the maximum amount for transactions with tokens is reached, FLP tokens can be used to conclude transactions on the Gameflip trading platform itself. In the very near future, partners and creators of the program of this platform, after investing in the tokens of their company, will begin to make transactions with goods of the game series using the Blockchain.
6. ADBIT tokens perform the main function of the CIINCHMedia platform, which was the first in the world to engage in planning and buying in the media market. It is also blockchain based. Designed specifically for the mass media (media), which include: radio, television, print media, etc. The goal of such a company is to provide assistance in an automatic mode, replacing all manual processes. CIINCH and ADBIT are doing their best to realize their goals and objectives so that todays media began to use new modern technologies.
7. The app store Buddy, which is used by developers, is founded by the developers themselves. In it, talented and promising programmers can create their own programs that will change the world of Blockchain technologies. The idea of promoting such a project is to create more opportunities for creative incarnations by destroying (removing) everything. The Baddy platform can be found on such clouds as Google, Amazon, Github. Its lists have been replenished with a solid number of partners and buyers.
8. Goldilock. The company is engaged in the replacement of the principles of data storage of all Internet networks, as well as their security. The innovations make it possible for each user or group (organization) to store their funds digitally in a specially created repository. It does not have access to the Internet (disconnected from it) for a period set by the user himself. The conditions under which the company provides security to each client is patented. It is also enabled on demand (command), which is given without using IP. Goldilock gives a full guarantee to ensure the safe storage of cryptocurrency keys and the safety of personal funds (digital).
9. The DACC Blockchain technology is the first in the world to be built on information, which represents complete data access control at a common level. The goal set by the company will allow to make a big breakthrough on the digital level and in the media. DACC gives the participant full control over access, storage, creation of his site.
10. Already the former head of the FCoin platform, Tzang Jian, completely created an exchange of cryptocurrencies, which are collected in China, based on transparency. The system is unique today. The principle of the system is mining and full distribution of profits. This platform allows you to return about 80% of the funds to society. Launched not so long ago, FCoin already has a solid information coverage (media). Volume growth reaches $ 17 million during the day. It is worth noting that the Chinese platform FCoin is officially on the market and is fully ready to compete with global cryptocurrency exchanges.

Cryptocurrencies occupy leading positions in the market in the modern world. Many VIP companies use modern blockchain innovations and technologies to keep track of their sales. Experts strongly advise paying attention to the top ten companies listed above in this area. Which of them will be the leader, only time will tell.

Blockchain in the world, in Russia and the CIS

Most organizations around the world are starting to boldly embrace Blockchain technology. They solve their tasks and problems with them. In our time, convenience in use and application of technology, which is located in the network and is configured for different areas of activity, is in the first place.

It is worth drawing the readers attention to examples of beneficial uses of Blockchain technologies. The very first and rather popular was the use of the Blockchain in the sphere of document flow and public services. In the United States, namely in the state of Florida, there is an agency that collects taxes. It cooperates with the BitPay service. With the help of it, it accepts fees and taxes for drivers licenses, car registration numbers, identity documents, property, etc. The service accepts everything in the form of Bitcoin cryptocurrency.

It is worth noting that Georgia is another country that makes extensive use of Blockchain technologies. First of all, it was added to the official website of the register of Georgia (NARR). With the help of it, you can now easily get a statement for any property. The use of the Blockchain has been going on in the country for the past several months. On specially created resources (blockchain networks), you can verify the authenticity of the received real estate document. Secondly, NAPR Georgia began to cooperate with Bitfury, which produces mining equipment. It helps the country to conclude transactions for the acquisition of real estate, land plots and draw up acts of ownership on them; register mortgages, draw up notarial documents. Such services of Blockchain technologies are also used in Ghana and Sweden.

As you know, blockchains are used now and during elections in many countries of the world. The technology is proven and does not allow outside interference. For example, blockchain technology was used in municipal elections in West Virginia (USA). Law-abiding residents of the state voted from different places, did not use ballots, and did not stand in huge lines at the embassy or their district. The government currently plans to implement such a system during the congressional elections.

Japan remains the only country in the world that comes first in the use of cryptocurrency (digital money) in real everyday life. Throughout the territory it is possible to pay with it in various coffee establishments and shops. Popular Japanese band Kasotsuka receives their performance fees in cryptocurrency, even selling tickets to their concerts using this digital money.

To deliver cargo from Argentina to Malaysia, a bank from Holland used Blockchain banking technology. When drawing up the transaction, the bank avoided the lengthy paperwork.

On the territory of the Russian Federation, since the beginning of 2019, they have been trying to officially introduce and legalize the Blockchain technology. For this, it is necessary to adopt the appropriate regulatory and legal acts. The Masterchain platform has already been created in order to increase the level of efficiency of the financial system. The blockchain platform in Moscow called "Active Citizen" was launched. She helps to conduct a variety of votes that make life in the city better.

The future of blockchain

Blockchaina technologies can revolutionize shared ledgers and become central to smart contracts and transaction processes. Behind them is the future of an information, secure and transparent system. Specialists in this field are constantly looking for the correct application of Blockchain and solutions for collecting utility bills (monthly). It is also planned to calculate and put into use smart locks that will be connected to the apartment system. This process means that if the tenant does not pay the rent, the lock will lock and prevent him from entering or exiting. This is one example that makes it clear that the future of Blockchain technology will be bright. Over the past period of time, most companies and governments around the world have agreed to use these technologies. The Netherlands is another prime example. The AirFrance-KLM holding is very active in them. It simplifies the time and ability to book flights using the Blockchain.

Over time, more and more organizations and enterprises will slowly but surely embrace all the positive aspects of Blockchain technology. In order to understand and understand the functions that cryptocurrency performs in comparison with ordinary traditional money , it is necessary to make a kind of comparison. Money plays several main functions: a medium of circulation, payment, a measure of value and a means of accumulation. With the advent of the Internet in our life, every day there is a transition from physical money to digital (cryptocurrency).

Every day there is an increasing number of the largest companies around the world that are transferring their assets to these networks. Thus, there is a transition of money to digital. Cryptocurrency enables companies to easily: develop their microeconomics, have common interests among their participants; avoid unnecessary disputes and fraud. In this regard, we can draw another conclusion about the promising development of the cryptocurrency market and Blockchain technologies in the future, and these forecasts are long-term.