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Bitcoin Protocol And a Technology And Its Backbone

Posted February 18, 2020 by EasyFinance.com to Finance 1 0

The backbone of the Bitcoin protocol and a technology that has changed everything forever is Blockchain or Chain of Blocks. One can do bitcoin era sign up to earn money from bitcoin.

You know why?

Imagine a computer room where everyone is synchronized in a network. If you write to a file, the information is registered instantly on all the computers in that network. The files are only enabled to write to them and their content cannot be deleted or altered, of which each terminal has an exact copy. The data is therefore distributed on each computer. This example would explain, in essence, what is the complex blockchain technology, also called blockchain, which aims to revolutionize society in the same way that the Internet did in its day.

But what is the Blockchain?

It is like a large registry where everything you want to set in a stable, secure and mediator way is written down with enormous security: a kind of record without a registrar or accounting without an accountant

The data is in a universe of computers, not in a cloud. According to experts, it is a distributed network, a network of points, called nodes or servers. That is why it is called 'distributed registration technology', because the information is distributed among all. In this network, where the servers are connected to each other through a peer-to-peer system (P2P), the teams use a consensus-language protocol to confirm that each data is verified and perform new operations. Each node can enter data without compromising privacy, since the information is encrypted. There are very strict rules, so privacy is guaranteed, because to access you must have some keys.

The information that is transmitted in these operations is called a token. To steal tokens or alter the blockchain, cybercriminals should compromise many hundreds or thousands of computers at the same time, so this decentralization and encryption make transactions resistant to manipulation.

For practical purposes, this infrastructure offers the possibility of making secure and verifiable transactions on the internet.

When was it first used?

Bitcoin was the first to introduce this technology in 2009, when the unknown Satoshi Nakamoto, a developer or group of developers, created this virtual currency after the outbreak of the economic crisis with the idealist objective of replacing money. The effectiveness and safety of the blockchain has meant that many sectors have set their sights on it. Mastercard announced last week that it will open access to its blockchain network to consumers, businesses and banks with the aim of offering new ways to make cross-border payments.

About 70 companies from different sectors have joined the Alastria consortium, the world's first regulated national blockchain-based network. As they explain on their website, it is a semi-public and permissible blockchain, as well as specialized for use in an environment subject to regulation.

How many blockchains are there in the world?

There is no single blockchain. There may be as many as they are believed, and the network can be public or private.

In the case of Bitcoin, all who buy or pay with this cryptocurrency do so on a public network.

If the network is private, the data that is entered into it is, be it redundancy, of a private nature - banking, tax, health information, for example.

These nodes are validators, that is, they control that the data is incorporated into the blockchain and is encrypted correctly. That is why it is called blockchain, the data is chained. The one who makes a transaction makes a note, a new data block, which can contain whatever we want, but that data is encrypted.

Because it is important?

The usefulness of this technology is that with it the intermediaries disappear. You have records without registrars, evidence of data that cannot be modified, since removing one link from the chain and putting another in its place is, in practice, impossible. It's like time, you can go forward but not backwards, it can't be changed. At this point two concepts come into play one is that of sovereign digital identity.

A person, instead of having 40 keys - that of Facebook, that of the bank, that of the Treasury, that of Social Security - has a unique one and manages it from a blockchain. It is called sovereign because whoever drives it is that person. The second concept is that of smart contracts (smart contract in English), rather than a contract is a program (software) that triggers an automatic order.

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