Is Blockchain technology and crypto currency the future?
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In a world where corruption and deceit lie deep within the government and financial system, the world was destined for a change in the game. This seemed like a far-fetched thing at first, for the segregated portion of society to have its own unregulated currency. However, the future is here, and so are cryptocurrencies whereas Bitcoin is king and the first decentralized digital currency. The vast majority of society is still in the dark when it comes to the minute details behind both how to gain bitcoin and then use it to send to others or make purchases. (Purchase Bitcoin and other cryptocurrency at Crypto.com , Binance or Coinmama.) (Check our our Binance review) Since essentially the course of human economic history, financial institutions such as banks have been the main facilitators of the world’s monetary value ranging from cash, to bonds, stocks, and even precious items in the method of safety deposit boxes. A new paradigm, however, is now being ushered in on the forefront of decentralized currencies which for the most part have the blockchain to attribute their already unrivaled success towards. The public domain for bitcoin and other cryptocurrency payments, being the blockchain, is the main facilitator for the payment solution as there is an ever-expanding list of users who are using bitcoin as a means for digital currency. The bits of data sent through the blockchain are referred to as “blocks” and are available on public records for everyone to view on a ledger, no matter how long ago the payment was sent. Blockchain, in particular, is the decentralized solution that allows user free control of their digital currency without the intervention of any third-parties such as banking institutes and government entities.
The blockchain is by far the most intuitive design to come by way of cryptocurrencies, which again stands as the scaffolding for how the entire system is able to work in a seamless many without user’s losing their currency. The complete information for every transaction on the blockchain is one of the integral reasons as to why bitcoin and other cryptocurrencies follow a truly transparent system. The way the blockchain works is that every single transaction is recorded on a block of data, which is essentially a file. Over time, the blocks fill up – the filling of blocks done is by time and not by the amount of data stored on it. In any scenario, the average time for a block to fill up on Bitcoin is ten minutes. As mentioned by the Journal Where Is Current Research on Blockchain Technology? — A Systematic Review, “Currency transactions between persons or companies are often centralized and controlled by a third-party organization. Making a digital payment or currency transfer requires a bank or credit card provider as a middleman to complete the transaction” (Yli-Huumo, Ko, Choi, Park & Smolander, 2016). Once the block of data has filled up, a piece of code is used that references the block to the next block, and then the next block and the next one; creating a chain of blocks which is rightfully dubbed the blockchain – this is a permanent record. Everything in the blockchain is universally time-stamped, so the miners that lend their computer to solve the math problems that eventually lead to the flow of the blockchain and quicker verifications cannot change any of the blocks themselves.
What is a 51% attack
The blockchain system is amazing and revolutionary but it is one of the only flaws in the whole of cryptocurrencies. There is a theoretical idea that has to do with the blockchain called the 51% attack. Miners that use their computers or ‘rigs’ as they call them, as stated before, do the math and ensure the flow for the blockchain. If one person or one company or one idea decided to contribute their computers to mining for the blockchain and they dominated over half of the miners, they would be able to manipulate and change the blockchain. That is why this is called the 51% attack and it is only a theoretical idea because it has never been done before and it would take an extreme amount of money in order to buy all the computers and staffing to be able to pull off such a job. Even then, for the user (unless they were just complete anarchists that wanted to destroy a currency) would not have much to gain from the attack because they could do with it is disrupt the operation that facilitates Bitcoin or really any other cryptocurrency or blockchain user. The attackers could deny payments and send them back to the original source; essentially, they could disrupt the peace that is Bitcoin which would make it lose its sense of novelty and the value of the bitcoin would decrease detrimentally. But as stated before, the attack is near-impossible to pull off because mining also has a high difficulty level and high competition, a lot of smart workers would be needed to pull it off – an extreme amount that is almost impossible. Despite the 51% attack, Bitcoin and other cryptocurrencies do not have too many other security flaws – as security is one of the main aspects of cryptocurrencies (hence the name). The entire system is near flawless, users only have a specific number, no name, and no identity, only a public number that people can see which is activated with their single-use randomly scrambled signature. Transaction details are ‘written’ on time-stamped files and moved further along the blockchain. The blockchain system is complicated and super secure.
Yli-Huumo J, Ko D, Choi S, Park S, Smolander K. (2016). Where Is Current Research on Blockchain Technology? — A Systematic Review. PLOS ONE 11(10): e0163477. https://doi.org/10.1371/journal.pone.0163477