1. Blockchain is a distributed database stored on multiple computers as a massive number of identical copies. These copies are constantly being synchronized due to which any new entries to the database are instantly distributed throughout the entire network. New entries are being saved by informational blocks from a unified continued chain, together making the blockchain.
2. Not a single entry getting into a blockchain can later be removed or altered by an abusive minority of users since it would take changing all nodes in the network which is practically impossible. This is why the data once written into the blockchain is practically unfalsifiable and unremovable by intention.
3. Blockchain is cryptographically protected; this means that due encryption, user can make new changes in the blockchain, based on personal prior actions. The user would be unable to make entries “on part of someone else” due to the lack of cryptographic key owned and known only by the specific user.
4. Classic blockchain delivers a high level of transparency – all entries are public and widely accessible. On bitcoin blockchain you can always see all transactions linked to a specific bitcoin address or specific amount of money. Not all users content with how things work and some altcoin developers decide to take a different path.
5. Developers who’d like to increase the untraceability of created cryptocurrencies
launch modified blockchains with scrambled transactions that are difficult to trace.
6. When creating the so called exclusive blockchains, for instance, in banking, developers can make the information restricted; depending on the access level, user can be enabled to process and read the entries in blockchain, as well as have limited or completely stripped rights.
7. In order to increase the speed and effectiveness of transactions of certain cryptocurrencies and, above all, bitcoin, some developers offer to create a “superstructure” over the main blockchain. This “superstructure” will be made from a separate network of nodes, ensuring the work of so called sidechains – additional blockchains are much more efficient when processing the bitcoin transactions, although not independent like main blockchains.
8. Aside from keeping the entries on transactions and fund transfers, blockchain allows to contain any information that can be digitally stored. This includes executable computer code. The code can be written in such a way that it would start its work when entering cryptographical keys by two parties that have agreed to collaborate under predetermined conditions. This technology goes by the name of “smart-contracts” and packs a huge potential for business implementation.
9. For most people blockchains are mainly associated with cryptocurrencies
relying on them in terms transparency of their work. However, ensuring the stable function of decentralized payment systems is not the only possible implementation of blockchain. Blockchain can also be useful when increasing the effectivity of state government and transparency of voting as well as the reliability of banking system, plus many other spheres of both economic and noneconomic activity like verifying the validity of issued certificates.
10. Effectiveness and honesty of blockchain, have nonetheless been especially well presented when implemented in cryptocurrency payment systems. The growth of public interest towards cryptocurrency payment instruments is preconditioned by the fact that anyone can find a set of personally favored benefits in cryptocurrencies
. Be it the speed and low costs of transactions, their independence from governments, banks and national borders or the accessibility of cryptocurrency payments.
It’s not surprising that the growing publicity of cryptocurrencies
went hand in hand with the growth of user base and demand for these limited financial resources as well as their price as a result. In the last one and a half year bitcoin has increased its value and capitalization by approximately 10 times, approaching $3000 today. The most prominent among altcoins (alternative cryptocurrencies) are mostly demonstrating even higher growth rates. Reputable financial sources and huge investors both agree that: cryptocurrencies are a promising investment asset. Investments into bitcoin
are more reliable and investments into other cryptocurrencies
promise a huge income.
Additional materials that may help you:
Cryptocurrency: Where to start? Pt.1 – Introduction
Cryptocurrency: Where to start? Pt.2 Technical side of the coin
Cryptocurrency: Where to start? Pt.3. Transferring Cryptocurrency
Cryptocurrency: Where to start? Pt.4 How to Ensure the Safety of Your Crypto Assets
What are the pros and cons of investing into cryptocurrency
Difference between cryptocurrency exchange and exchanger
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