What is Blockchain technology and how does it work? Today this question is about a cryptocurrency business. Not everyone know exactly the basic of work of this industry. How does Blockchain relate to the Biotin, Ethereum or any other type of virtual unit? Cryptocurrency is a very important fact of development of current world economy. That is why the spread of profound knowledges about these coins is so important. Moreover, this information is not only for those, who want to invest in this business or to become a miner, it is for ordinary people. They are also going to involved into the world, where cryptocurrencies are going to as spread, as cash or credit cards now. Here will be told what it is a cryptocurrency and how Blockchain technology works.
It will be good to begin with the explaining the role of innovation in the latest period of human history. If to compare our time, for example, to the period, which was two hundred years ago, we can see how bigger role has innovations and technologies today. It I even difficult to renovate the lifestyle of previous ten years. It sounds funny, but in films that level of life, which was ten years ago was closer to the period of nineties. Now we cannot build our life without technologies. The more new thing we implement to the ordinary life, the more successful is the human being. Just imagine that such current obvious things as internet, electric cars or smartphones are not a part of our life. Electric cars had been a dream and imaginations of freak engineers before they made this technology cheap and affordable for the usual consumers. Today even in not top developed states electric engine cars are on the roads and their number are going to increase. The same situation was also with smartphones. Several years ago, when they were only beginning to become a usual gadget on the streets, there were doubts about the profitable of their productions. Special material that are used to produce touch screen is not comfortable for the users and they would not acceptit as a standard of mobile phones. In time, it was becoming difficult to find user that had not used touch-screened smartphones before. Perhaps, there have not left such one in a whole world. Finally, the influence of the internet and its role in modern life. Can you imagine the fact that more than a ninety percent of world economy cannot work without this invisible thing? It means that your post will not come, salary will not be paid, and there will be no social networking services and so on.
It is our current life. Innovations are coming to us so fast that can even not realised it. New thing become old the day that they were produced and the trends are becoming old-fashioned too.
Nevertheless, there are technologies that produce really big influence. It was mentioned higher some of them. The last one that it worth of attention is cryptocurrency. It is a type of digital currency whose emission and accounting are based on asymmetric encryption and the application of various cryptographic methods of protection such as Proof-of-War and / or Proof-of-stake. The functioning of the system is decentralized in a distributed computer network. They technology that makes it real is Blockchain. What it is and how does Blockchain technology work?
Transaction block is a special structure for writing a transaction group in the Bitcoin system and its similar.
For a transaction to be considered valid (“verified”), its format and signatures should be checked and then the transaction group written to a special structure – a block. Information in blocks can be checked quickly. Each block always contains information about the previous block. All blocks can be built into one chain, which contains information about all the operations ever committed with the bitcoin. The first block in a chain, the genesis block, is considered as a separate case, since it does not have a parent block.
The block consists of a header and a list of transactions. Block header includes your hash, hash of the previous block, transaction hashes, and additional service information. The first transaction in the block always indicates the receipt of a commission, which will become a reward for the user for the created block.
Creating blocks and then transforming them to chains – that is the way, how the cryptocurrency are made. This process does not require any special abilities or equipment. You have just to programme your computer to produce the block that requires your cryptocurrency. The equipment can be usual home gadgets, but they have to be launched to the powerful electricity.
These basic knowledge does not fulfil the understanding of the process that occur in cryptocurrency world. However, this text is your first steps into the cartographical future.