Algorithms for tradingDwain Ross 19 / March / 21 Visitors: 160
The system for decentralized data exchange, called the blockchain, was originally created as part of the Bitcoin algorithm and provides a mechanism for data registering. Even then it caused a huge wave of controversy. One thing is clear: this was a technological breakthrough, which is comparable only with the invention of the Internet. The incentive for the development of the blockchain was the crisis of 2008, when people lost faith in traditional financial institutions and instruments. Banks and the state lost people's trust.
The alternative was not long in coming and it was proposed in the form of a mathematical algorithm that does not require intermediaries, i.e. the state, banks, lawyers and accountants. The blockchain algorithm did not require commissions for transactions, contracts with counterparties, worked absolutely anonymously and democratically. The person behind the blockchain concept is known under the name of Satoshi Nikamoto, which is very likely to be a pseudonym or even a collective image of a team of several people. It means "the foundation of enlightened thinking"in Japanese.
They say that to see the creator of the blockchain is like meeting a live Santa Claus or looking under the mask of Guy Fawkes. Some think it is a Finnish scientist-programmer, others find their traces in Ireland and in the USA. They have not contacted their email since 2011 and there were reasons: having hundreds of thousands of bitcoins from early releases and the lack of a public person's personal life were not coinciding with the intentions. They cannot or do not want to say where Satoshi and the members of the first team are now.
Technically, a blockchain is a distributed worldwide database and managed autonomously. The devices for their storage and processing are not tied to one single server. The database consists of archives of ordered records (blocks), each of which contains the coded number and the so-called hash, which connects the part of the chain to each other. Blocks can be compared to the files of your computer's registry, the difference is that these files are stored simultaneously on millions of computers and are public.
The blockchain algorithm uses encryption, which solves two problems:
· Ensures data security of the user that owns a private key that authenticates the digital signature;
· Provides synchronization of copies to users around the world.
The blockchain algorithm regulates the amount of money in the system itself and no one can influence it. With the appearance of the blockchain, the problem of a double transaction disappears, which is when money can be erroneously sent to two different recipients. It is usually overseen by thousands of people in banks and payment systems, who you pay for as a remitter. You are not supposed to pay to anybody is paid for it in the blockchain system because a unique code is assigned automatically and the miners who calculate the transaction confirm or reject the operation. Thus, the blockchain takes on the most important functions, which today are performed by numerous intermediaries:
· Registration of transactions between the participants of the system;
· Confirmation of the identity and certification of digital signature;
· Registration of copyrights;
· The conclusion of smart contracts, etc.
In conclusion, we could recommend you the book by the Canadian authors Don and Alex Tapscott " Blockchain Revolution", which is thought to be one of the best one on the topic to date. Now you can download it for free or order it on Amazon.