What Can a Blockchain Do?

The development of cryptographic technologies opened abig space for programmers and engineers for creating innovations and implementing them to the ordinary life of society. Modern cryptography gives to the world such a fact as a Blockchain. Blockchain is a basic point of building in modern online world. Everyone has heard about Bitcoin, Ethereum and other cryptocurrencies. They are all build by chain of blocks. We are going to tell you – what is the role of Blockchain in modern online world, why it uses cryptographically codes, and show that all on the example of virtual currency and others.

The science of encrypting the information now is developing very quickly. Computers in modern world can be hacked in any time. That is why cryptography is very close to the Blockchain theme. However, the cryptography is not a phenomenon of the latest time. It has been using all around the world for more than four thousand years. In past, people encrypted their secret information on the paper, by special sticks or by special machines in time. Modern cryptography is a separate scientific direction science, which is related and very close to the mathematics and Computer science. The usability of this technology was spread on the different parts of our life. Moreover, ordinary people may not know what exactly is it, what can a Blockchain do and where it uses. The influence of cryptography on our life is very powerful and spreading of knowledge about its basics of work will be important not only for those, who wants to use this to make money online, but also for usual users to have a clear view about it.
Initially, cryptography studied methods of information encryption – a reversible transformation of open (source) text based on a secret algorithm or key into encrypted text (cipher text). Traditional cryptography forms a division of symmetric cryptosystems, in which encryption and decryption is carried out using the same secret key. In addition to this section, modern cryptography includes asymmetric cryptosystems, electronic digital signature (EDS) systems, hash functions, key management, receipt of hidden information, and quantum cryptography.

How this information can help to understand: what does a Blockchain developer do? As it was mentioned before, the encrypting of the information plays a great role in online world. Today Blockchain is widely known in the world because of the cryptocurrency.

Nevertheless, before we began to observe the sense of the virtual unit, it will be better to tell more about the Blockchain, and how it works. Blockchain or block chain is a decentralized and distributed database in the open source model in a peer-to-peer (P2P) internet network without central computers and without a centralized data storage, used for posting individual transactions, payments or accounting entries encoded using cryptographic algorithms. In fact, Blockchain is a specific decentralized and distributed transaction register or, in other words, it is a decentralized transaction platform in a distributed network infrastructure. Blockchain can be public or private. However, it does not means that its creation is an exclusive ability of limited group of engineers. Anyone can make it having enough knowledge of creating. The only two thing that you need are the ability of creating blocks on your computer and the power electricity system. In latest time Blockchain making takes more power than in previous time.

What can a Blockchain do? This technology is used in different programs. One of them are smart-contracts. The parties sign a smart contract using methods similar to signing the sending of funds in the existing crypto-currency networks. After the parties sign, the contract comes into force. To ensure the automated performance of contract obligations, an environment of existence is required, which allows fully automating the execution of contract items. This means that smart contracts can only exist within an environment that has unrestricted access to executable code to smart contract objects. It is an example of private type of Blockchain. Banks also use these variants in their inner usage. The other type is public Blockchain. The best and well-known example of it is cryptocurrency. Cryptocurrency, less often a cryptographic currency – a distributed accounting system based on cryptography, storing information about the state of ownership in conventional units. The state of ownership is related to particular system nodes (“portfolios”) in such a way that only the holder of the corresponding private key would have control over a given portfolio and it was impossible to issue the same unit twice. All of them are based on the chain of blocks with the information that allows to create a coins and then to earn money with them.

As you can see, Blockchain is very progressive and modern technology that are very important on the internet. The best of it is that everyone can launch creating them. All depends on your wish.

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