Modern technology called blockchain is an absolutely universal system of distributed registries of all kinds of data, which will be available to every user of this network. For example, a certain digital currency, the basis of the workflow of which is directly the blockchain, can perform such actions as create, move and, accordingly, be stored outside the direct competence of a state organization, financial or legal institution. But, despite all of the above, every financial transaction will be recorded in the blockchain and is public.
All blocks located directly on the grid are finished with the help of mining. Moreover, for each new block created by the user, the miner will be credited with a certain reward, which subsequently makes up a whole financial cushion of his work. In cases of successful completion of the first transaction, it must be confirmed by several active participants in the network – this is the primary goal of decentralization of innovative blockchain technology without predetermined intermediaries. In all this, there is the main privilege of the blockchain over the classical banking financial system, plus it works 24/7 and does not depend on the conditions of the Central Bank of a particular country.
Innovative blockchain technology is needed where speed is an important aspect, plus maximum reliability of financial data transfer. In other words, in almost every sphere of human life, namely:
- when concluding so-called smart contracts for the supply of various goods;
- verification of the results after the secret electronic voting;
- work with cryptocurrency and in many other areas.
For example, to find out information about the layer 2 blockchain infrastructure, which makes it possible to introduce innovations into the traditional fiat financial system, it is worth going to the https://www.lition.io/ website, in which everything is detailed and accessible.
Are there risks in using blockchain technology?
Back in 2017, experts believed that all cryptocurrency transactions were maximally protected, and special encryption schemes with a public key are completely impossible to crack or replace. However, all this does not mean that there are no vulnerabilities at all. As it turned out later, the appearance of weaknesses can be directly related to the blockchain platform itself, which is not entirely safe to use.
Another threat is the emergence of modern quantum personal computers, which have theoretical so far only the ability to open all encryption algorithms with the presence of public keys. So quite dangerous and acceptable for villains “attack-51”, which is associated with the unification of a critical number of active users for the network. Among the main risks and disadvantages of blockchain technology can be identified:
- The absence of a legal field as such;
- Lack of proven and sufficiently effective technological solutions;
- Proper configuration and management of the entire available infrastructure;
- Somewhat slow workflow speed due to cryptography and other less important points.
- From all this, it follows that blockchain is not exactly a perfect technology and requires more advanced and secure operations for mass use by financial institutions.
The history of blockchain technology
Such a concept in the world as “blockchain” does not refer to any national origin. The history of this particular term dates back to 2008, due to the fact that a group of anonymous persons published a certain tempting article, which later became a manifesto of this modern innovative technology. This article described in detail its positive characteristics, as well as the possibilities for creating a high-quality decentralized system of all kinds of monetary settlements.
Subsequently, there were a sufficient number of different versions of who this manifesto stands behind. As for the first block, it was generated a year after the article appeared, namely in 2009. To date, about 2 thousand species are circulating in the world based on various modifications and versions of the blockchain.
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