Blockchain is the technology that makes it possible to operate the vault – an algorithm that allows the encryption of public key transactions, access to them with private keys, and the public distribution of the entire resulting log. Although sophisticated, technology does not require anything special, and is in everybody’s reach – so far, more than 700 virtual coins have been emitted by the Bitcoin model, successively higher or lower. But its possibilities are barely beginning to be explored. Crypto Codex is the next step.
Property authentication and exchange of values are just the basic functions, but the most interesting application of the moment is the automatic execution of contracts. Now with classical payment systems and even with bitcoin, the fundamental problem of any transaction remains trust. The person who pays in advance can be deceived by the one who has to deliver. See more info here.
In traditional finance, solving is the escrow account: the money is held by a third party that makes the payment only when the contractual conditions are met. However, the escrow account has substantial costs because it requires highly qualified human supervision, so it is only used for large transactions and important contracts.
With the help of blockchain, the escrow function can be programmed into the payee itself, so the actual transfer is only made when the algorithm finds objective (but also observable online, which is an important limit at this time). In this case, the currency leaves the bankers, accountants and lawyers in a single shot. Another possible application is electronic voting, which is simultaneously anonymous and publicly validated, leaving them out of work and some of them, or politicians or bureaucrats.
Check out this url: https://www.mirror.co.uk/tech/what-is-bitcoin-currency-crash-10409961
The boldest speculation says the blockchain might even decentralize both Google’s and Facebook’s functionality by decentralizing internet search and social networks. And, somewhat ironically, the technology that makes an anonymous bitcoin to be used in the reverse direction to authenticate identity in a much more robust way than existing ones. This latter component has particularly attracted the attention of the mainstream financial system. If the KYC (Know Your Client) and AML (Money Laundering) laws can be respected, then the cryptographic currency becomes acceptable from the perspective of the States, and the other benefits can be capitalized.
It would not be a premiere as a technology that was born and raised in underground to become something every day. Digital compression and online streaming were primarily used for piracy, until large content producers were forced to adapt and open their own outlets. Pornography has been the one that hugs in the dispute between VHS / Betamax standards and, more recently, BluRay / HD DVD. And online bets have decisively contributed to the critical mass needed to spread Internet payments.
These lessons have been learned. Virtual coins are a challenge.
All the companies in the news above are already concerned about the blockchain, but it does not mean that everyone will survive the technology. Central banks will probably fail to control the currency exactly as states have been unable to control the distribution of information with the advent of the Internet, and commercial banks will enter the downward spiral of mainstream media. Much of the financial transactions, and not only, will be decentralized, and there are likely to be some big winning companies that will capitalize on the new technology. Additional resources can be found here.
The most likely candidates at the moment are two tandems of competitors with sufficient spread but also supra-state power, threatened by technology, but who can make the most of it.
Check out this link: https://www.digitaltrends.com/computing/what-is-bitcoin/
Such a tandem is Google / Facebook, companies that together mediate more than half of online traffic. The inclusion of a simple and universal payment system was a natural step for them even if the blockchain had not appeared. Although there is speculation that both would investigate the technology, there is still no information.
The challenges for them are multiple – Google has so far failed in almost all projects that are not related to the main business, the search (one of which is even the Google Wallet payment system), and Facebook has not even ventured into related areas. But if any of them would succeed in such a project, that would multiply their proceeds now. The blockchain threat is not vital, or does not seem right now, but mutual competition does not allow them to ignore the potential