BLOCKCHAIN TECHNOLOGY (DISTRIBUTED LEDGER) is the greatest invention of the 21st century, the ability of the network to transfer value between people automatically directly without intermediaries.
Some people think that Bitcoin is a game. Bitcoin is the same game as the Internet, as an internal combustion engine, electricity, X-rays - all this was the game of those who invented it, but all these games are phenomenal technological steps of humanity, today is the day of the largest technology in terms of social significance - a distributed register of value accounting (blockchain)- the technology of truth and Bitcoin is its best implementation.
This is the greatest invention of mankind and it is no longer possible to invent it back, what the Internet has done to the world is freedom of information from publishers and it has completely changed the world what blockchain and cryptocurrencies will do is more phenomenal changes - this is the technology of independent exchange of values,global settlements around the world, free from banks and other institutions:
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Wells Fargo
How many ways were there to transmit information before the Internet? Tablets, scrolls, fairy tales, books, telephone, television, cinema, radio...what method is used today mainly for transmitting information? Where are all these publications, libraries and films... - everything is now on the Internet - a single-level system of independent transmission of information to any person or group for free (or almost) and without permission.
How do people convey value ? Through objects, through the authoritative assurance of important persons that his receipt is a security because he has gold in his basement ( a meaningless thing , you can 't eat it to get enough , you can 't set it on fire to keep warm , you can't make either a knife or a hammer - too soft , gold is used extremely limited in industry and if the price corresponded to the demand of industry it would cost 10 times less).
After 30 years of research (!!!), in 2008, a method was invented for the universal transfer of value between any people without permission and around the world instantly and for free (almost a commission for a block of 30 rubles in Bitcoin, for example, you can transfer at least a trillion dollars in a block)
It is not difficult to guess that in another 5-10 years, the majority will transfer values through the blockchain system, and not through banks with their 3% commission!
THE ESSENCE OF BITCOIN
Bitcoin - this is a new reliable payment protocol, it differs from the numerous services of PeyPal, GooglePey, SWIFT, MasterCard, VISA, Yandex Money, QIWI...the fact that, unlike these services of the 70s, the new technology does not require manual data reconciliation when sending and receiving transactions and does not have the possibility of third-party interference in sending to change data, all these outdated value transfer systems require manual verification of each session or can be quite simply hacked (every night more than 4 billion rubles are caught in manual mode, a huge staff of programmers and return to the cards of Russian citizens after hacking Chinese hackers - bankers are silent about this and take huge commissions for this work) .
Immediately after it turned out to transmit any information via the Internet , the question arose how to reliably transfer money and valuables without an intermediary and a regulatory body in the form of a human factor .The solution turned out to be on the surface - this is distributed accounting - each participant of payments in the system controls each participant of payments and there is no main controller all are equal and all have the same table of expenses and incomes of each and constantly check it and thus one or a group of less than 51% will not be able to influence the entry in the general ledger.
A simple example: 5 people play poker and put chips on the line - who has more chips is counted after the game -a cash settlement option, if the sixth person records the winnings and losses and he takes into account the winnings, then this is an example of a cashless settlement with an intermediary who of course also needs to pay - this is a bank, but if each participant would record the results of each bet of each participant in the game, then an intermediary and chips are not needed, and the result for the majority will be honest and if one person decides to cheat, the rest will point out his mistake.Such a system is called a distributed registry , in the Bitcoin network, each user's wallet contains ALL the records of ALL users for the ENTIRE period of existence of this registry since the beginning of its maintenance , i.e. since January 3, 2009 . The information that one wallet sent another unit of value is recorded by all 300 million. wallets, and this record is distributed by devices such as masternodes and miners - special computers on the network, for this work they receive a small reward based on a unit of information, and not for the nominal amount.To protect the network from hacking, all network transactions are packed into blocks of information with a crypto signature in a temporary order, who is the first of the mining computers to find this signature of the reverse hash function, he receives a reward for the block -the more miners the more powerful the computing network, the more difficult it is to find the key and the more power the hacker needs.
SECURING BITCOIN
And what is the Bitcoin payment network today - it is more than 300 million. user wallets containing a copy of the registry are more than 20,000 masternodes - servers leading the distribution of records of new transactions among these wallets and more than 4,000,000 miners united in thousands of pools confirming each transaction of masternodes and in each miner 400 processors from 16 to 5 nm architecture (the most modern) equal in power to a billion ordinary desktop computers -this whole network was created by private investors at their own expense and it has no other more powerful analogue in the world and is not subject to any of the governments (in fact, there are simply not so many desktop computers in the world - only the golden billion of the population can afford them, and not every such family has a computer at home, not to mention giving its power to an organized network for round - the - clock work , and the supercomputers of the states are single and their total capacity is small ) -ALL THIS POWERFUL BITCOIN INFRASTRUCTURE HAS NOT GIVEN A SINGLE FAILURE IN 11 YEARS OF ITS EXISTENCE (exchanges and online wallets that stored private keys for signing transactions on their old unsecured servers were opened, but not the Bitcoin network). When asked what Bitcoin is provided with, this is the answer: ITS INFRASTRUCTURE is equal in power consumption of an average European country, and in computing power it has no equal in the world! You may object that this is a very energy-consuming network, BUT 105 million people work directly in the banking sector (which is absolutely not needed with this technology), 200 million more people work in related industries and 100 million more in related technological chains. man - what a colossal amount of resources and energy are consumed by these most non - poor segments of the population compared to the whole continent !
Bitcoin is an independent payment system around the world . For example, to create such a payment system in the form of a bank, it will be required in every city, village, village, aul... create a branch with employees and a private communication channel . How much will such an infrastructure cost even with a separate bankers in one locality! Bitcoin has done an incredible thing - it has provided a personal banker to every inhabitant of the Earth, anyone can send valuables over the Bitcoin network to any person or even a robot in the world through a "personal banker", which is his Bitcoin wallet. Now imagine a bank with the number of employees equal to the number of inhabitants of the planet - and how much such infrastructure will cost !
Similar distributed registries with different encryption algorithms, block sizes, ways to approve blocks based on proof of work like Bicoin or proof of ownership of a part of the coins in the masternode itself (which does not allow incorrect calculations - the owner of the masternode will lose his deposit if he is caught in a mistake - there are special algorithms when other masternodes monitor the active ones and this whole system does not require a huge amount of electricity ).There are already more than 3,000 such distributed systems-the so-called cryptocurrencies, but there is not one that, like Bitcoin, does not have its own developer or a group of developers on whom their future development or withering depends.Only Bitcoin has a public structure of 10,000 voting masternodes who are interested and constantly improving the mathematical algorithmic code of Bitcoin which it is open and publicly available. Bitcoin has no office, no director, no team of employees, no single server, there is no way to block or destroy it as long as there is at least one live wallet from it, as from one cell, you can download the entire registry and restore the entire network. In fact, Bitcoin is an analogue of DNA - it contains information about the whole organism and its entire history of evolution in every cell of this organism - Bitcoin is a technology equal in its architecture, ability to develop and self-defense as organic life - tenacious and able to adapt to a changing world - a mathematical technology copied from God himself! With its self - development, Bitcoin ensures the current security of the code - so the threat of an attack of 51% from quantum computers has already been solved by introducing an algorithm for sequentially calculating hash functions , which puts the operation of a quantum computer into normal mode . Bitcoin is an HTML protocol on the Internet of Values-anyone can make suggestions for its improvement , and an independent community of 10,000 masternodes votes for its approval and input into the current code while preserving the fundamental basic principles.
So :
1) AFTER 30 YEARS OF RESEARCH AND 11 YEARS OF USE, A SYSTEM OF NON-CASH PAYMENTS BETWEEN PEOPLE, NOT BETWEEN BANKS, HAS BEEN CREATED.
2) THIS SYSTEM HAS A CLEAR INDICATOR OF VALUE AND MATHEMATICAL INFLATION IS LOWER THAN ANY OTHER VALUE, WHICH MAKES IT COMPARABLE TO THE METRIC SYSTEM - IN FACT, IT IS A MEASURE OF THE REFERENCE VALUE FOR ANY OTHER EXCHANGE. THIS IS COMPARABLE TO A REFERENCE METER -FEW PEOPLE TODAY MEASURE THE DISTANCE IN YARDS, BOAS AND PARROTS IT IS MUCH CLEARER TO MEASURE IN METERS.