Because safety is guaranteed by ALL users at the same time – there is no need for other intermediaries or central clearing system. You can always send bitcoin packages worldwide directly to a recipient via blockchain system without having to wait for an approval or pay any transaction fees.
Blockchain technology was used to protect Bitcoin cryptocurrency from double expenses and fraudulent operations. The ability to distribute information between network participants without copying to individual nodes contributes to the system decentralization. Now they are trying to introduce Blockchain technology into other areas of life.
Blockchain is a chain of blocks that are built sequentially and continuously. Changing the information in the block leads to changes in the entire subsequent chain, making it impossible to make changes inconspicuously. Blockchain or distributed registry technology can be used to record not only financial transactions, but also any data that needs to be kept unchanged.
The digital registry keeps track of transactions in a peer-to-peer network. Peer-to-peer is a network of nodes of the same order, the information in which is equally important. Once other users have approved the block, it joins the chain, making changes to it almost impossible. Only the owner of the power 51% of the entire network can change the record (in the history of Bitcoin, this did not happen).
The algorithm feature is the absence of a third party in transactions. Participants see the operations they create or receive. Other network members – miners – take charge of data authentication for a commission. Cryptographic hashing algorithms and digital signatures are used to increase reliability to ensure the integrity of transaction parameters.
The simultaneous operation of the consensus mechanism and the hashing algorithm prevents the possibility of attack. The consensus mechanism is responsible for the exact copying of materials in the block to all network nodes. If there is a simultaneous invasion on several nodes, the remaining retain the original information. The SHA256 hash algorithm returns a new hash value when you make the slightest change to the blocks.
Protection against money laundering occurs with the help of electronic-digital private keys. The sender’s identity is hidden from most users, but they see the public key. Thus, each member of the community has equal rights and opportunities.
The technology is universal for creating secure databases:
Blockchain spheres are databases requiring increased security, resistance to attacks, and user fraud. On the Blockchain, they develop apps for business, healthcare, financial and investment markets, and real estate. Distributed ledger technology allows you to:
Blockchain is an ideal base for maintaining patient records, prescribing medications, collecting data from medical devices (equipped with IoT) and exchanging data with insurance companies. eHealth Estonia applications implemented the technology, the joint projects of the eHealth Foundation and Guardtime, PokitDok, and FarmaTrust.
A person’s digital identification will be simplified with the widespread adoption of Blockchain. Shaan Ray, on his Twitter blog about new technologies on Twitter – Twitter.com/ShaanRay – shows the current situation with examples.
When people use various services on the Internet: Paypal, Amazon Pay, Google Wallet, and other sites, they leave a digital footprint. Personal user data falls into multiple databases and is stored there. If any information changes, for example, the address, then the “digital clone” becomes irrelevant but continues to exist.
There are also several additional problems:
Private companies BlockAuth, Civic, Existence ID and others use digital identification of employees without a centralized server. The Bitnation platform provides an almost identical range of services, like those in government offices, but with the principle of decentralization.
IBM and SecureKey Technologies have proposed a blockchain algorithm with different access levels. Since a distributed network can be public and closed, participants can independently choose the circle of people to whom the data will be visible.
The Web 3.0 IT stack is currently under development. The modern Web 2.0-based Internet has centralized core servers. DNS networks allow you to protect sites about DDoS attacks and accelerate the demonstration of accessible pages. But this does not solve the problem 100%. Also, there is always a risk of user data theft.
Internet Web 3.0 using Blockchain will become transparent and secure. The technology also integrates with IoT – the Internet of things. Any devices with artificial intelligence: refrigerators, air conditioners, microwave ovens, home helpers Alexa and Google Assistant – will be able to connect to Web 3.0 automatically.
The Web 3.0 IT stack is entirely user-centric. A P2P network is about connecting and creating content quickly. The posted information will not be controlled by the media, monopolists, or government organizations. The semantic web also remembers the user’s behavior on the Internet and offers them more relevant pages (ads, social networks, music, films).
The most obvious way is to mine cryptocurrencies. But to confirm transactions, you need equipment with a high hash rate, and this requires a significant initial investment. It is now possible to mine Bitcoins either using a specialized farm or as part of a large pool. Mining altcoins is more accessible, but it is not known what their value will be in the near and distant future.
A few more options:
There are three legal ways to purchase digital tokens:
A distributed digital registry is applicable in many areas of life. Its use guarantees system fault tolerance, reliability, relative anonymity, and transparency for the community.