The hype about the new technology
The blockchain technology is celebrated by many as the Holy Grail of the networked world. We deliver you the blockchain info that matters. Because the inventor is hiding behind a pseudonym and the technique may seem incomprehensible at first sight, the concept has already passed through a true mystification. So far, the strategic management in the fewest cases had interested with which technology specific applications were realized. The success of Bitcoin (the number of bitcoin currently in circulation is almost 16 million), the initial project of blockchain technology, but now leads to innovation pressure in some industries. The attention and investment capital provided will enable a whole new range of applications in the future. Pioneers of the digital industry feel as if the gate had opened to a new dimension. The technology has the potential to stagger the giants of some industries, catapult startups in a few weeks into new spheres and thus change entire business models. So it’s about time for info about the explosive topic. With this blockchain info we deliver you the most important facts to the point.
Blockchain is like a cash book
When the digital currency Bitcoin (BTC) was presented to the public for the first time in 2008, the blockchain was only a minor artist. It was “only” the realization technology in the background. The concept was published under the pseudonym Satoshi Nakamoto and to this day is not clarified, which person or which team behind this name hides. The blockchain itself is a database and works like a cash book. If, for example, Mr. Müller sends a BTC from his wallet to Mrs. Schmidt’s wallet, this transfer is entered as Blockchain Info in the blockchain. If Mrs. Schmidt then transfers a certain amount to Mr. Schneider, this is also entered and shown in both wallets. Information about each transaction within the Bitcoin network can be found in the Bitcoin Blockchain. What is a page in a cash book is a block in the blockchain. If the block is “written”, a new block is attached in which is written. It creates a chain of blocks, the blockchain. The blockchain is visible to everyone, so there is perfect transparency. Transactions can be viewed in the Web on the Blockchain Info page (https://blockchain.info). Here you will also find various statistics and further information on the topic.
Wallets as “accounts”
Mr. Mueller can easily create a wallet or several wallets, which act as an account in the network. In this wallet, he can keep several addresses. These are called public key and are a kind of Kontonummer. Since the transactions are transparent, the “balance” on the addresses in the web can be seen by everyone. A complete blockchain info. For example, on the website www.bitcoinrichlist.com it is possible to see the addresses with the highest “balance” and to get further blockchain info. However, only the holder of the digital key, the so-called private key, has the power to dispose of the account.
Security through mining
A simple digital cash book would, of course, not be called a revolutionary technology. Behind the blockchain there is even more, for example the storage of the data. The blockchain is a distributed database. It is not located on a central server that is accessed by all participants. Every participant in the network has a copy of the blockchain on his own computer, which is constantly matched with the network, by downloading the wallet. It would not harm attackers anywhere on a computer and manipulate or delete the data in the blockchain. The network would recognize this and restore the correct copy. In order to be able to successfully modify the blockchain afterwards, more than 50% of the computing power in the network would have to be controlled. The majority here decides on the truth. To keep the blockchain up-to-date, updates of transacted transactions must be distributed across the network. This is where the so-called mining comes into play. Persons involved in the mining process provide the computing power of their computers to seal the blocks through mathematical functions. The seals can later be used to determine whether the data in one of the blocks has been subsequently changed. This is, of course, the simplified representation of a complex cryptographic process. The miners also receive a reward for their computation which is distributed in the currency Bitcoin (BTC). This is catapulted for many miners very lucrative, especially as the bitcoin price 2013 on over 1000 dollars.
Smart Contracts as digital contracts
The blockchain technology was released under the open-source license and is thus freely available to everyone. After Bitcoin became more and more popular, alternative blockchain-based currencies, so-called altcoins, showed up. However, only a handful could get through. Soon the Ethereum team came up with the idea of using the potential of the technology apart from currencies. Smart-Contracts are popular representatives of these alternative applications. These are contracts which are executed in exactly the same way as agreed upon. As an example, a land purchase can be taken. If the buyer has fulfilled the prerequisites, for example the transfer of the agreed purchase contract, he is automatically noted as the new owner of a property. A blockchain enriched with program logic and the entire network ensure compliance. The seller can not manipulate the contract and get rid of the money with the money and transfer the property rights. Smartcontracts might make trustees such as Paypal or Notaries redundant. At the same time, it could replace registers, such as a land register. A further frequently mentioned application is the administration of copyright.
Trading with cryptic currencys
A further not-to-be-despised application is online trading. On the kraken.com trading platform it is possible to buy and sell the most common tokens. In addition to trading in dollars (USD), this online exchange also offers the possibility to trade in euros (EUR). The site also provides users with lots of information, statistics and charts around the currencies. The price for the individual trades is also with a high number of coins, so little that the way to the first million nothing stands in the way. As a special service, the API of the platform can be used to enrich your own homepage with information about the current courses. A documentation of the API can be found on the homepage of the site. A tutorial about using kraken.com can be found in the latest version of our tutorial.
Many industries can benefit
The financial and energy sector is currently working hard on innovations in the field of blockchain technology. No wonder some of their core functions could be made redundant by the technology. Banks or credit card companies have always been the intermediary for monetary transactions in the past. With a network based on blockchain no middleman is needed and the transfer is visible within a few minutes in the recipient’s wallet. The energy market of the future could be revolutionized by the blockchain. For example, private solar plant owners could offer their generated electricity on the market at their own terms and sell it to the neighbors. The blockchain also offers these industries a various chances when they are willing to adapt their business model. The technology offers, for example, great savings potential, by getting rid of the huge IT infrastructure. This would save the banks enormous costs and for energy companies the calculation of microtransactions for small amounts of electricity could become suddenly lucrative.
Blockchain has great potential
The blockchain certainly holds a great potential for the future. Since the code is “open source”, companies can also use the technology to create their own blockchain. However, it is not suitable for any application, but can only proof its advantages in areas where such a distributed database makes sense. This is in a network in which many different parties interact. The cards, for the new business area emerging from the innovation, are just being mixed. However, it might be worthwhile keeping an eye on some existing projects. The Etherbasics team will soon provide you with more Blockchain information.