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What is blockchain and why is it needed


07/30

In the mind of the average user, the very word blockchain (block chain) is very closely associated with the term bitcoin. But this is an erroneous opinion. Blockchain is not a currency. Blockchain is just a tool with which you can store transaction data (database). The main advantages of using blockchain are transparency of transactions and multiple copying of all these transactions so that each participant in the process always has information about each step of all partners. If you try to describe it more simply, imagine a large shared folder on FTP. You can see all its contents (no hidden files) you can quickly see who uploaded files and into which subfolders. What kind of fileswhen and for whom. But at the same time, everyone has different access to these files. Someone can view the list of files in each folder. And someone (the addressee of a particular file) can download the data to himself. Moreover, no one else will be able to access the file only the one to whom it was intended. Or, for example, a large electronic wallet with open statistics. You can see that the account received $50,000 from user A for user B. User B transferred it somewhere else in the system an hour later. At the same time, the users themselves hiding behind the letters A and B can be both anonymous and identified. It depends on the platform itself and the purpose of its creation. All participants in the chain can monitor the movement of funds, but only a user with the necessary rights (B) will have access to the funds themselves. The rest, in this case, perform the role of observers. This ensures the proper level of openness of the transaction. The entire chain of transactions is duplicated and stored in an unchanged encrypted form for each participant. It won't be possible to fake it somehow. The blockchain is decentralized, there is no single common command center. If you hack this system, you will not be able to destroy all the data about the transaction and its participants or replace them. For example, if a transaction was carried out in which 100 people participated, then this blockchain chain will remain working and viewable even if 99 computers of other participants are corrupted. After all, in fact, each link of the blockchain chain is a kind of complete backup of the data of all transactions of all other participants to this link. Hacking one of these computers will not affect the safety of data on other computers in any way. Blockchain is a very reliable system that makes sense to order https://unicsoft.com/ and integrate into your business. At the moment, bitcoin and litecoin are working on blockchain technology and banks are actively looking at it.


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