Mining a cryptocurrency is the act of validating a transaction, by finding a hash less than a certain value (the hash has therefore to start with many zeros). There are multiple ways to mine different coins, but I chose to mine Bitcoin Cash with asic usb miners. Here...Read More »
Last week, Bitcoin Gold (BTG) hard forked from Bitcoin (BTC). The slogan of the new cryptocurrency, “Make Bitcoin decentralized again”, shows very clearly the goal of BTG: to re-decentralize BTC.
“The intent behind the creation of Bitcoin Gold is to support true decentralization of Bitcoin, with the goal...Read More »
What is the Blockchain?
The Blockchain is one the most innovative and promising creation of the 21st century, yet most people are not familiar with it. First invented by an anonymous group of programmers named Satoshi Nakamoto, the blockchain was the platform for the first crypto-currency, Bitcoin. Unlike other currencies, Bitcoin was a way for people to achieve financial transactions without the interference of any type of government. The Blockchain was therefore a completely decentralized database, holding a currency that couldn’t be monitored nor regularized by the government. However, since then, the Blockchain has greatly evolved, as more coders are finding other potential uses for this innovative technology.
The main characteristic of the Blockchain is that it is a distributed database, meaning that rather than being centralized on one server, the data held on the blockchain is actually shared among all of its users. The records and transactions happening on the blockchain are therefore publicly shared and easily verifiable by anyone, reducing the risk of fraud and corruption. As a result, the blockchain can be looked at as a network of nodes: nodes are individual computers connected to the blockchain, that can validate transactions, in other word, perform the other users’ transactions by finding a new block in the chain for them. These nodes are called miners, because they find blocks in very complex ways involving solving mathematical equations, but obtain some of the money from the transaction in exchange.
Overall, the blockchain really works because it relies of a system of digital trust that includes authentication and authorization controls. When preforming a transaction, every person involved in it has to use his private key (or signature) to prove his identify before the transaction, including the receiver. This allows nodes to verify that the user who wants to perform the transaction is actually the owner of the crypto-currencies being sent, and that the one receiving the money is actually the one it is being sent to. Then, once the transaction has been validated, miners find a block to perform the transaction.
With its decentralized database, the blockchain makes governments become oblivious; every thing is controlled by everyone, but no one can control anything individually, which is why the blockchain is very promising and will continue to grow in the future: “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
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