Press "Enter" to skip to content

Beyond Bitcoin

Even yesterday we did not know what the bitcoins were, the digital currencies and blockchain but today the world is changing and it is changing so fast that not everyone can have the time to understand and accept these changes more and more followed. We listen to the news or read on the Internet, or maybe acquaintances and other people that the price of bitcoin has increased its value several times. Cryptocurrencies continue to grow but most people still do not realize that the financial system and the entire world are changing right now, and those who believe they know everything may be wrong.

An important thing is always to have the information and the correct understanding of the things that happen because tomorrow in a new world you can not find a place with the world.
With cryptocurrencies nothing is as simple as it seems. Bitcoin can free the world from the unjust financial system and banks but it can also destroy it.

It was the 2008 of an anonymous group of people a person was hiding under the pseudonym Satoshi Nakamoto and published a document under the name white paper which described the technology and the operating principles of bitcoin that same year the bitcoin.org domain was registered and the first articles were published, the followers and evangelists of the bitcoin had already appeared people who believed in the idea and the basic technology of the bitcoin and in the blockchain, in that moment the bitcoin was the value of the future totally safe and anonymous that could be used without intermediaries like banks and could not be controlled with supervisory authorities or other individuals. But the main feature of bitcoin is that it does not belong to anyone, people thought that way and still do.
In 2009 the exchange rate of bitcoin was 700 or 1600 bitcoins for every dollar by the end of 2017 a single bitcoin was worth 20 thousand dollars the exchange rate increased 32 thousand times is fantastic growth and the bitcoin keeps growing every new brand psychological is reached faster and faster and soon we will see the cost of a bitcoin in 50 thousand dollars 100 thousand 200 thousand and perhaps up to one million.

Why is bitcoin and other cryptocurrencies growing? the answer is simple because at the root of most cryptocurrencies is blockchain technology, it is a chain of blocks, where each block stores information about transaction addresses and the structure itself is completely decentralized.

Decentralization is the keyword when the servers that secure the network of certain cryptocurrencies do not belong to a circle of people, there are hundreds of thousands of computers and each one contains a complete base of the bitcoin blckchain, the complete transaction history, account balances and other things, all the transactions in this network can be traced back to the first one and this is how we obtain the transparency of the information of all the users.

To change any data in the bitcoin network, or to hack the Blockchain you must change information in more than 100,000 servers in which the owners are regular users and miners.
Mining is a method to extract bitcoins, when it provides that computer information from your computer to ensure the correct functioning of the network, for doing so you are rewarded with Bitcoins but it is not as simple as it seems, the more servers there are in the network less it is received from bitcoin.

There is already an entire industry around bitcoin and other cryptocurrencies, you could previously mine in any computer when the entire network was small and the bitcoin had just left, but now there are special mining computers whose sole purpose is mining and its computational power is not comparable with a normal computer that’s why doing mining in your common computer has totally lost the sense of some cryptocurrencies.

Now having a private return without making large investments in equipment is no longer profitable, individual miners were replaced by mining pools, entire buildings with servers that generate enormous computing power and investments in these projects amount to millions of dollars. Therefore we can see how private and independent mining and the base of honesty and reliability of the bitcoin network passed into the hands of huge mining pools
Most people make money when they buy. The generally correct decision to buy some type of cryptocurrency whose growth can be equal to 500 or 1000 percent in a single month, and sometimes, even more. But it’s not all that great, some cryptocurrencies may fall but in very rare cases.

2015 bitcoin began to go out into the world and into the wider communities and in 2017 there was a significant jump in popularity and growth, and not only with bitcoin but with other cryptocurrencies called the Altcoins.
The cryptocurrency community has grown, there are more and more developers and technology specialists in blockchain, cryptography, and decentralization. Bitcoin had its disadvantages, even in 2014, bitcoin technologies were obsolete, and with the growth of its popularity affected an inadequate network takeoff capacity. In December of 2017 if you sent a bitcoin to another address, the confirmation of the transaction was delayed 24 hours or even more. The new cryptocurrencies began to appear as for example Ethereum, this platform was supported by the cryptocurrency community as a way of raising funds for development and promotion. Through the ICO, also a recent concept, the first buyers of the Ethereum tokens also increased their investments by dozens of hundreds of times with the increase in cost and capitalization of the exterior. The blockchain began its penetration to our normal life. It is important to understand that the creation of cryptocurrencies such as bitcoin and others, by far is not the only application of blockchain.Ethereum is a blockchain much more modern and better technologically than bitcoin, this platform allows advanced transactions to be carried out , provides support for smart contracts and the creation of customized tokens for lateral projects. Smart contracts are a new direction that emerged with the development of the block. Imagine a smart digital contract that includes all the terms of a transaction and nobody can change them, for example you created a smart contract to sell a house, programs of the necessary terms using that contract you will need to create for it in this case it is selling a home. The buyer adds the address of the intelligent contract and the equivalent amount in cryptocurrencies and there reviews the contract to see the updates in the public register of real estate every 24 hours and then it will appear information that your house is registered for the buyer, the contract intelligent transfer the total amount of money to your account if this information does not appear in the record within a month the smart contract will return the cryptocurrency to the buyer is the simplest example that allows understanding that there is a huge future in the blockchain, is the technology that will help practically get rid of fraud and disappointments of both citizens and authorities migration of public services private companies and others. The blockchain offers not only transparency but protection and guarantee because the information in blockchain can not be changed without leaving traces.

Comments are closed.