Bitcoin has revolutionized the financial market by enabling uninterrupted, fast and completely online transactions. Due to Blockchain - an intelligent chain of blocks that support the system - it is possible to make moves from anywhere on the planet in seconds.
This mechanism has attracted more and more companies in the world to have less bureaucracy and offer a quality service.
WHAT IS BLOCKCHAIN?
Blockchain is a public registry that guarantees agility, efficiency and transparency in financial transactions . It is a data structure that does the transactions without intermediation and does not require a central institution or authority to validate the movements.
There are several types of Blockchain, but the most common model is the one used for virtual currency (bitcoin). It can also be understood as a ledger, which lists all the accounting operations of a particular company.
The difference is that the data is shared with everyone who participates in the crypto-coin system, for example, and they are irreversible.
This technology has been so successful that several segments are being attracted to it, such as insurance companies, stock brokers and security companies. It can also be used in financial, business, government, electoral, and many other systems.
WHAT ARE THE ADVANTAGES OF BLOCKCHAIN?
The information entered in Blockchain is encrypted and requires a digital signature. Therefore, the security of the transactions is greater, which guarantees the integrity and protection against possible threats.
Anyone participating in this huge database has access to all transactions. However, it is important to note that they can not be altered or tampered with after processing.
In addition, Blockchain can be accessed from anywhere and allows the system to be distributed on thousands of computers. This causes an update to make synchronized copies in seconds.
HOW DOES BLOCKCHAIN WORK?
There are a few steps that need to be understood when we talk about Blockchain, as we will explain now. Check out!
1.Registering The Transaction
The record of a transaction is stored in Blockchain in a decentralized and distributed manner.
Let's think of an Excel spreadsheet with simple information, such as source, destination and value of the procedure, that are stored in the system and a copy can be accessed by any participant in the block. It is interesting to note that nobody has access to the people involved in the operations since all the data is confidential.
2. Making The Transaction Anonymous
Through private keys or also called addresses, users perform transactions privately. Ideally, for each move a different address is used, which is composed of numbers, letters and other characters. In this way, the identity of the participants is preserved and only they have control of the procedures exposed there.
3. Making The Transaction "Official"
It is not enough just to send the bitcoins to the destination to carry out a financial transaction. The main feature and advantage of Blockchain is that the data needs to be validated to make an "official" move and be included in the system.
To do this, the so-called miner is used , a computer that checks the information every 10 minutes. Then, if everything is correct, it removes the pending status from the procedure and generates an encrypted code that makes it official.
4. Making The Transaction Immutable
If each user receives a copy of the spreadsheet with the transaction data, how do you make nothing to be tampered with? This issue of unchanging movement is one of the main benefits of Blockchain.
It uses a mechanism called hash, in which it creates a sequence of numbers and different characters for any set of digital information. Therefore, if something is modified in the text, even a comma, it generates another hash. As a result, the final operation will not be validated, as there was a change in the initial document.
WHAT IS BLOCKCHAIN IMPACT ON THE FINANCIAL MARKET?
The transactions carried out through Blockchain have gained more and more space in the financial market and it is not for nothing.
A survey conducted by Infosys Finacle showed that more than 80 percent of financial professionals expect to work with Blockchain by 2020.
Still, according to the study, the average investment in projects with this technology should be approximately $ 1 million this year alone.
This type of operation has several advantages and the main one is the peer-to-peer model, in which information can be shared without the need of a central server. This causes significant cost savings .
This benefit also allows for no value limitations, since any amount can be transferred in a matter of seconds, or rather, almost instantaneously. This issue eliminates the difficulties that many users face due to restrictions imposed by banks and financial institutions.
Therefore, the most common movements performed by Blockchain are the international ones.
WHAT ARE THE MAIN CHALLENGES OF THIS TECHNOLOGY?
One of Blockchain's biggest problems is the lack of standardization in its use, which creates huge challenges and even difficulties for people and companies.
Another factor is the need to rely on a general collaboration to implement it in some company. For this, we must involve employees, information technology , operators and other institutions to improve usability.
Blockchain has emerged to revolutionize financial transactions in the world. Through it, the movements are carried out with speed, security and transparency. This system allows the operations to be carried out almost in real time, prioritizing privacy with confidential information: and the most interesting thing is that everything can be done from anywhere on the planet through the internet.
AUTHOR BIO
Americas Top Casinos is trending casino website. We constantly publish latest news, casino reviews, guides about casinos. Obviously, it has everything that you need to stay updated — Our goal is to explain you in depth about the Latest Casino News and make you to have some knowledge about it.
Americas Top Casinos is trending casino website. We constantly publish latest news, casino reviews, guides about casinos. Obviously, it has everything that you need to stay updated — Our goal is to explain you in depth about the Latest Casino News and make you to have some knowledge about it.
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