Thursday, December 15, 2016

What is Blockchain and how it works

Remember Bitcoin phenomenon of 2015? It turns out that the coins themselves are far less valuable than the underlying technology, called Blockchain, which created them. What is Blockchain? Blockchain technology behind the crypto currencies. This is a method by which a series of data stored in digital public accounting register. Specifically, data that exist simultaneously in a plurality of mutually independent computers instead be stored centrally. This makes clear the register, update – fast and independent, and falsification of data – virtually impossible.
Today, more than 40 of the largest financial institutions and a growing number of companies are experimenting with technology as found it the reliable way to track the ownership of assets without the need for a central authority – a way that can accelerate transactions and reduce costs and fraud.

WHAT IS BLOCKCHAIN?

Although Bitcoin payments are anonymous, each transaction is recorded chronologically in a public database, called blockchain. It is an open, distributed and decentralized system, each participant in the Trade Bitcoin can create entries in it.
What is Blockchain and How it works? The new payment system!
Blockchain has detailed information about all addresses of Bitcoin users as well as their balance at any time. In practice, this allows, if a consumer has a Bitcoin wallet to make payments worldwide in their desktop or mobile device.

OBSTACLES BLOCKCHAIN

The biggest problem with Blockchain technology at this stage is that it is difficult to implement, especially because, as is characteristic of all open source projects, there are a number of projects, each with their own teams and ideals, while collecting all the functionality in an application is the time-consuming task.

THE PROJECT HYPERLEDGER

Hyperledger is a project that seeks to unite all the different approaches Blockchain open source that currently exists. According to the creators of the project, the results of this work may lead to changes in the way market transactions take place, including a global level.
The project includes two global players in global financial markets including CME, Deutsche Boerse, London Stock Exchange and leading IT companies like IBM, Cisco, Intel. Among banks and financial institutions who have joined Hyperledger are ABN Amro, Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon, Wells Fargo, SWIFT.

THE POTENTIAL OF TECHNOLOGY BLOCKCHAIN

In practice, Blockchain technology can be used in every area that requires maintenance of an independent and transparent database. Blockchain technology gives much more secure, transparent, fast and efficient way to perform transactions. Several dozens of companies developing Blockchain platforms and much more use the technology to offer different types of products and services. The community is working to build the world in which everything – from renting an apartment and fleet management, subscriptions to periodicals or fitness can be made through Blockchain. This eliminates the need for intermediaries in almost every sphere.
A number of governments such as the UK and that of Barbados already exploring possibilities to use this technology. In the developing world, it can fill the gap of lack of key infrastructures such as bank branches and ATMs. More advanced countries they can use it to optimize its administration significantly and reduce costs.
Source: CIO

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