Bitcoin allowed people to trade directly with each other, while being in different parts of the world. But the underlying blockchain technology has proved to be applicable far beyond the payment system. Soon, it will completely change the whole world of Finance. Let’s understand how.
We’ve all heard about some virtual money that costs a fortune and which you can mine yourself. The magical money is called bitcoins. Although the real treasure is not the money but the technology using which people can exchange it: blockchain. Let’s figure out where did blockchain come from and how it will affect our lives very soon.
Distributed registry of a chain of financial transactions where each subsequent block is cryptographically linked with the previous one is called blockchain and is used to ensure the stability of transactions, protection from money fraud and fraudulent transfers to two people at the same time. It became the basis for the creation of cryptocurrencies, pairs of which are the items traded on special crypto exchanges. Traders have numerous tools and solutions for working with assets based on the blockchain.
To simplify, blockchain is a database with records of transactions, which is stored simultaneously on all computers in the network. Blockchain is used to record user transactions. Unlike Tor or VPN, it does not serve to anonymize a user on the network. Blockchain-based systems can be anonymous and personalized depending on the specific application.