Blockchain - what is it in understandable language. Analogies and example of using Block Chain to create cryptocurrency. Standard results of using blockchain

Companies using blockchain for their work processes have begun to appear more and more often on the market for goods and services. Resumes of IT developers that mention the word “blockchain” are in high demand, and available vacancies do not last long. Blockchain technology is becoming more popular day by day, and its application in a specific industry entails an increase in demand for the company's performance.

Blockchain implementation

After the appearance of Bitcoin in 2008, the creation of which uses blockchain technology, analysts noted the great potential of this innovation in the information technology market. It is predicted that in the near future, blockchain will replace outdated schemes for working with data that do not provide the necessary processing speed and storage security.

Blockchain is used in banks and other financial institutions that work with cash flows. Large foreign and Russian ones to solve pressing problems:

This technology is gradually being introduced into government services: Rosreestr has launched a pilot project for registration land plots and real estate using blockchain. In the housing and communal services sector, it is planned to replace the simple system for processing applications for current and major repairs with blockchain. This platform is currently being tested, but the ministry plans to introduce official use of this system at the state level.

Foreign countries use blockchain as an alternative to classical methods of working with information in the following areas:

• system for recording the migration of persons (European countries with an increased influx of migrants);
• healthcare system (Latvia);
• notarization of information (Estonia);
• Postal Service (USA), etc.

Commercial organizations are switching to blockchain by various reasons. Decentralization of data, encryption, minimal risk of hacking are some of the advantages of this technology. But at the same time, not every company can afford to implement blockchain into its work process.

Most often, this entails large financial investments that are not available to average-income organizations. The need to train employees, purchase new equipment, advertising costs - all these points affect the final cost of blockchain implementation. It may turn out that for a particular company this moment classic working schemes are more profitable than using new technologies. Therefore, the first thing you need to do before using the blockchain is to calculate all possible costs and planned profits, and then compare the data obtained.

Development of blockchain systems

To develop blockchain systems, as well as analyze the company’s activities and calculate the need to implement this technology, a team of specialists professionally involved in these issues is invited: business analysts, crypto bankers, IT specialists and managers.

The process of developing blockchain systems includes 2 stages:

1. creation and configuration of software,
2. selection and installation of equipment.

Each stage is important in its own way to obtain an effective result.

Usage open source in creating blockchain projects provides a unique opportunity for developers. The most commonly chosen platform, or design basis, for creating blockchain-based smart contracts is Ethereum. Applications built with Ethereum have a number of attractive characteristics. They cannot be censored, rolled back, or data changed from the outside. These properties make blockchain projects stand out from others.

In addition to applications and smart contracts, the blockchain requires additional software components: cryptocurrency wallets for storage and exchange digital money, web consoles for viewing mining results, online editors for debugging and testing.

Equipment for blockchain systems

Blockchain, as a technology, is implemented on computing devices with access to the Internet. Blockchain costs consist of 3 points:

1. Purchase of equipment that meets the quality characteristics for mining.
2. Payment for electricity consumed by equipment.
3. Payment for access to the global network for devices.

Computing devices used for blockchain mining must have powerful video cards. They are used to maximize quick solution mathematical problems, for which the user receives a reward in the form of cryptocurrency (bitcoin, ether, zicash, etc.). Processors, unlike video cards, work slower with repetitive operations, and therefore their use in the blockchain does not lead to the desired result.

Interesting! For professional mining, the most popular are ASIC chips, which are configured to solve the same type of mathematical problems. Thanks to this, their performance is an order of magnitude higher than video cards and processors.

Blockchain solutions for business

The use of blockchain in the business industry has a positive effect. Various companies are gradually joining new technology, creating interesting solutions existing tasks based on blockchain.

Short review famous companies involved in blockchain solutions:

• IBM and Maersk. They proposed a project for implementation that would reduce the number of documents required to process deliveries of perishable goods. Accelerating the delivery process will reduce costs and increase trade turnover on a global scale.
• Microsoft. Develops the ID2020 program, which will allow a person to be identified using one global document. This project is of greatest interest in countries with a high level of refugees from disadvantaged regions.
• Qiwi. It is exploring the possibility of applying distributed registry technology to its payment system. He is an investor in a project for unmanned delivery of goods.
• Megaphone. Issued shares using blockchain. Transactions took place using smart contracts on the Ethereum platform, which reduced payment processing time.
• Blockchain Solutions Group. This company creates and maintains web resources that process cryptocurrency transactions. The Solutions Systems Group is also an investment bank offering profitable offer in the digital technology market.

To find out full information about a company offering services for implementing blockchain into an existing business project, it is most convenient to use an INN. Using this 10-character code, the Federal Tax Service website at www.nalog.ru opens a list of information entered into the Unified State Register of Legal Entities: date of creation, form of ownership (IP, LLC, PJSC), size of the authorized capital, list of types of activities and other characteristics.

Five best blockchain companies according to vc.ru

1. r3.com
   Develops a platform that allows financial institutions and businesses to transact directly with each other.
2. Digital Asset Holdings LLC
   An American company is creating a blockchain system for conducting instant transactions between banking organizations.
3. Brave Software Inc.
   Brave Software Inc. in the recent past, she created her own browser, which offered rewards in bitcoins for viewing advertising materials.
4. Abra-Plutus Financial Inc.
   Abra-Plutus Financial Inc. developed a popular mobile app For quick investment funds in cryptocurrencies and fiat.
5. Blockstream
   The company develops Bitcoin payment systems and sidechain technology - third-party Bitcoin block chains.

Video: Abra launches world's first global cryptocurrency exchange platform and crypto wallet

Conclusion

The emergence of a new information technology caused a stir among firms wanting to work with blockchain. Companies planning to implement this platform into their workflow must carefully consider the process of selecting a contractor to ensure that the investment is not in vain. Blockchain is one of the ways to develop an enterprise, and its use will not always be economically justified.

Do you want to start your business on the blockchain? Decide what problems blockchain will help you solve, how much development will cost, and whether you want to be a pioneer paving the way for competitors.

Where to begin

Define a use case

Why do you need blockchain? Decide how you would like to “pump up” your business. Formulate your company's goals and business model problems.

If you need to provide buyers with the history of the origin of a product, blockchain will help record the entire supply chain: where the product was and how it was handled. Each record in the blockchain depends on the previous one, and it is impossible to replace data retroactively.

One of the most famous examples such a use case (use case - use case - Inc.): - a Walmart initiative that uses solutions from IBM to create a consistent product story throughout their entire lifespan. life cycle, from the moment of shipment by the supplier until purchase by the client of the retail chain.

in a completely secure and transparent manner without intermediaries - government agencies or centralized organizations. This speeds up and reduces the cost of processing and allows the use of business models that were not previously implemented due to high costs.

Look for alternatives

Now it is important to understand whether it is possible to solve your problems without blockchain - using traditional relational databases data.

Oracle and MySQL are deployed on millions of servers and tested against trillions of queries. Their code has been tested many times, optimized and therefore less susceptible to possible errors and bugs. When using “established” technologies, it is much easier to find a specialist to develop and support software products.

And many blockchain solutions on the market are less than two years old. The developers believe that if you have a choice, you should not turn to technology that is still in diapers.

Explore examples

If you are sure that you want to deploy a blockchain solution, analyze published cases of its implementation in businesses from your or a similar field to identify the nuances and evaluate the effect of implementation.

Case analysis will show what tasks this technology is used for. The main property of the blockchain - the immutability of information - works like a double-edged sword: on the one hand, it guarantees security, on the other hand, it permanently secures an erroneous transaction, and in order to roll it back, the consent of the second participant is necessary. The blockchain can be returned to its “as was” state, thereby undoing transactions made after the restore point. A large number of such kickbacks can damage the reputation of your business.

Most likely, after implementing blockchain, business processes in your company will change dramatically. This needs to be taken into account at the planning stage - at a minimum, draw up a diagram of business processes before and after implementation. To adjust the usual workflow, you will have to spend money on supporting an updated IT infrastructure and additionally train employees to work with the new technology.

Remember: blockchain does not protect against everything. Human factor will not go away: employees can “deceive the computer” by knowingly placing in the register false information. If you want to eliminate the possibility of fraud at the cashier level, then even after implementing blockchain you will have to duplicate control over the situation using classic means like video surveillance.

Don't forget to assess the technological risks - blockchain protocols are new and not without drawbacks. At the end of last year, Ethereum coins equivalent to $300 million were lost to users' accounts due to a coding error. For insurance against similar situations you will need expensive specialists.

What are the solutions?

Create your own blockchain

The most difficult, time-consuming and most expensive thing is to create your own blockchain from scratch, if other offers on the market do not meet business requirements - it will provide maximum flexibility.

One of the largest corporations in the world, Disney, created its Dragonchain blockchain. It is expected that Dragonchain will become a system for trading Disney assets and will help other companies create blockchain solutions without the cost of hiring relevant specialists - an incubator for blockchain projects is already part of Dragonchain.

Use a ready-made platform

To avoid creating your own blockchain from scratch, you can use a ready-made platform such as Ethereum, Hyperledger or Exonum. This software will make it easier to develop and integrate different components large software project.

This solution is suitable if the company has the opportunity to employ developers and consult with blockchain experts, as the mining company BHP Billiton did. She needs the Ethereum blockchain to track the movement of ore and coal by transport companies. Now this data is recorded using spreadsheets and there is no guarantee of their integrity: any record can be replaced “retroactively.”

With the introduction of blockchain, the results of, for example, mineralogical analysis will come directly from the contractor in an unchanged form.

The transport and logistics company Maersk resorted to IBM solutions: they use blockchain to manage loading and unloading operations. The technology allows you to track goods in various ports peace and celebrate their condition. In the future, blockchain should help Maersk optimize cargo transportation - monitor the availability of empty containers on ships.

What's the result?

Before you become “another blockchain company,” determine what you need it for and look for alternatives. Restructuring business processes, development and implementation costs, the risk of switching to untested technology - isn't the price too high?

Research your target market: who in your or related industry is using blockchain? Are there any cases of real implementations? They write about these implementations common words or are there details and nuances? Collect as much information as possible to once again weigh the pros and cons. You don’t want to become a pioneer whose mistakes competitors will learn from.

If you decide to follow the “blockchain path” and have decided on the case, goals, objectives and possible benefits from implementation, try testing a pilot version of the solution in the cloud (most likely, you will need a third-party agency or development team specializing in certain blockchain solutions).

After testing, you will understand how best to deploy the blockchain, create detailed plan introducing technology into your business and you can choose whether to build your own blockchain, use a ready-made platform, or turn to BaaS.

Over the past few years, reports have appeared regularly about the use of blockchain technologies in the banking sector. However, are they really important for this area and are there any pitfalls?

Cryptorussia interviewed 12 experts and they all agree that the implementation of blockchain for a bank is rather a necessity due to technological development.

“Banks became interested in blockchain technologies several years ago, and are now trying to create certain developments. Why blockchain? It’s interesting, it’s convenient, it’s safe, revolutionary and reliable,” notes Venera Shaidullina, an expert at the blockchain laboratory of the Financial University under the Government of the Russian Federation.

A number of experts, for example, Mikael Karamanyants, director of Russiansoft, call the introduction of blockchain technologies inevitable. And many people think that banking sector“the most suitable for the implementation of blockchain technology.” For example, the commercial director of the Convenient Solutions company, Alexander Guskov, speaks about this:

“Banks are a tool that is designed to competently manage cash flows, thereby generating added value and speculatively increasing capital. In this regard, banks simply cannot stay away from the formation of supply for high demand"

Why should banks use blockchain, according to experts?

• transparency and reliability of data. It's hard to distort them
• data immutability,
• systematization of information,
• reliability during data storage and transmission,
• decentralization,
• low cost of operations,
• elimination of intermediaries,
• increasing the level of security,
• reduction of fraudulent transactions,
• reduction of various risks,
• possibility of automating payments,
• automatic clearing.

Transparency, speed and cost of transactions

The most frequently cited benefit from experts is transaction transparency. Commercial Director of Convenient Solutions Alexander Guskov explains the importance of this indicator:

“The technology itself allows us to improve the quality of the bank’s internal processes. Since the system is built in such a way that every transaction is recorded and, in fact, every coin or contract is tracked from the moment of its inception to end user this significantly facilitates the issues of currency control and financial monitoring, as well as control of financial flows in general.”

Universa founder Alexander Borodich calls the reduction in the cost of transfers and their acceleration one of the main advantages for banks in using blockchain technologies. In this regard, blockchain is becoming a competitor payment system SWIFT. In addition, according to the expert, a customer identification system can be created based on this technology.

“Blockchain has the potential to fundamentally change the way transactions are concluded and confirmed, cash management, asset optimization and many business processes that today collectively cost banks billions of dollars in annual expenses. The technology will provide banks with efficiency, speed, security and low cost across multiple processes. This will directly result in both a reduction in cost and an increase in the quality of services for end consumers,” concludes Alexander Borodich.

According to Anton Shugai, head of the blockchain laboratory brdt.pro, using blockchain technologies banks can reduce operating costs by up to 80%. In his opinion, the speed of interbank transactions is reduced compared to SWIFT from three days to 5 minutes, if we talk about the slowest networks. In the cases of Ripple, Stellar and Nano, operations will be carried out in a split second, the expert claims.

As a specific example, Artem Koltsov, Chairman of the Expert Council on Digital Economy and Blockchain Technologies under the State Duma, cites Ripple.

“There is a global superstructure, but it is not yet clear whether our country’s banks need it? For example, there is the Ripple cryptocurrency, which in theory should conceptually solve the same problem as Swift. But in the case of Swift, the movement of finance between countries can take a long time due to the passage of many barriers. As for Ripple, thanks to the concept of this cryptocurrency (supported by major global banks), payments are processed instantly,” notes Artem Koltsov.

Blockchain in lending

We should not forget about the traditional areas of participation of banks in people’s lives. First of all, about lending. As Crypto-A CEO Alena Narignani reminds, the most problematic thing in this activity is assessing the risks when issuing funds. Blockchain allows the bank not only to obtain the necessary data, but also to maintain its confidentiality for third parties. Technology separates public and private data.

“It’s worth mentioning separately about smart contracts - they allow you to create any pool of information in any form. This means that when performing banking operations on the client or bank side, relevant documentation can be generated in the format required by the participants in the process. Such solutions can significantly increase labor efficiency, relieving bank employees of paperwork,” notes Alena Narignani.

The downside of implementing blockchain technologies for banks

However, there is another side to the development of blockchain technologies in the banking sector; Mikhail Hovsepyan, director of development of the fintech service TransferGo, draws attention to it:

“The introduction of blockchain technologies benefits companies providing financial services, but can turn against the banks themselves. For example, our service cooperates with the Ripple blockchain platform. We save on transactions due to the fact that we bypass the usual banking costs, and accordingly, our users also save. The more such cases appear on the market, the harder it will become for banks to withstand competition and continue to charge huge fees for their services.”

Despite the fact that many experts see many advantages in the blockchain specifically for the banking sector, this situation itself is paradoxical, as Roman Bugai, CEO of the cryptocurrency asset trust fund Smart Crypto, reminds that cryptocurrencies were initially created as a counterbalance to the banking system:

“What do we see now? Banks have long begun to implement blockchain technology, and some are seriously thinking about issuing their own tokens. For example, the Liechtenstein bank, Union Bank AG, intends to issue not only security tokens, but also stable coins in the near future.”

Be that as it may, banks may not be able to withstand competition if they do not use blockchain technologies, many experts believe.

“I would say that the banking sector in the form in which it exists today is losing out to blockchain startups in the financial sector,” says Alena Narignani, CEO of Crypto-A. “Banks will have to change (and they have already taken this path) and develop, otherwise they will simply become obsolete.”

The following people took part in the survey:

• Deputy Chairman of the Board of the financial store Boggat Alexander Orekhov,
• Director of Development of fintech service TransferGo Mikhail Hovsepyan,
• expert at the blockchain laboratory of the Financial University under the Government of the Russian Federation Venera Shaidullina,
• Director of RussiaSoft Mikael Karamanyants,
• founder of Universa Alexander Borodich,
• Commercial Director of the company "Convenient Solutions" Alexander Guskov,
• Zichain trade infrastructure development manager Danil Yakovlev,
• technical director of the Softline group of companies Eastern Europe and Central Asia Dmitry Novikov,
• Chairman of the Expert Council on Digital Economy and Blockchain Technologies under the State Duma of the Russian Federation Artem Koltsov,
• CEO of the fund for trust management of cryptocurrency assets Smart Crypto Roman Bugai
• Head of the blockchain laboratory brdt.pro Anton SHUGAI
• CEO of Crypto-A Alena Narignani.

The question of “how is life in Russia?” blockchain? literally excites the minds of all those interested in this technology for several years now. All known cryptocurrencies are built on its basis, the number of which is measured in thousands. The use of blockchain technology in finance has already proven its worth. In Russia, development is also taking place in the field of blockchain technologies, despite apparent difficulties. Not long ago, technology was involved in practice between a Russian and a foreign company blockchain a transaction was carried out between Alfa-Bank and S7. We can say that this is a small revolution for our country. But now the most proactive entrepreneurs are asking the question: “How to implement blockchain technology and do it on on a regular basis? And so that there are no problems with the law.” This is where the main difficulties begin. To understand them, let us remind you how blockchain works, and then we will figure out why blockchain has not yet turned the world upside down.

What is stopping blockchain from revolutionizing the world?

Blockchain adoption is being slowed by many factors. Among them are significant energy costs, the wait-and-see attitude of market players, the lack of legislative framework, protection of the FSB and the difficulty in achieving consensus on the creation of new systems between a large number interested parties.

Power and electricity

As blockchain systems develop, they require more and more computing power and huge energy costs.

The development of new technology inevitably entails a large-scale restructuring of the entire system, affecting the interests of many parties, each of which will have to assume certain risks and costs. A number of stakeholders already see themselves as more of a threat to their business than an opportunity for development. Other participants are in no hurry to take action active actions and adopt a wait-and-see attitude to avoid the uncertainties, risks and costs of creating something new.

Legislative regulation

Blockchain is a unique phenomenon in history that does not have traditional economic restrictions. That is why, until now, no one has been able to fully describe the areas and methods of application of blockchain and cryptocurrencies.

The lack of a legislative framework also entails a lot of doubts among market participants, since in order for new technologies to gain trust, they must meet standards, at least state ones. No standards - nothing to live up to. In fact, blockchain can be called a currency, a commodity, a security, and even a store of value, so it is important to determine its classification and legal aspects.

For some EU countries, cryptocurrencies are already on a par with “means of payment”, as a result of which they are not subject to VAT. The positive side of this comparison is that the legal and economic aspects of the interpretation become clear, and new opportunities arise for countries to develop national cryptocurrencies by creating their own issuance rules. But, as everyone knows, when creating national currencies, countries must set a certain exchange rate; cryptocurrency is no exception in this matter, and this entails the destruction of one of the important advantages of cryptocurrency - its decentralization.

If you compare a cryptocurrency with a security, then you can hypothetically begin to perceive it as a kind of commodity (thing), while securities that have become uncertificated have, in principle, already lost their physical form, characteristic of things. However, a security differs from a thing in that its value is determined not by its properties, but by the obligations that the issuer of the security guarantees to fulfill. There is a danger that by equating cryptocurrency with a thing, one can end up subject to VAT, which, however, did not happen with securities.

Some have expressed the opinion that it is necessary to qualify cryptocurrencies as financial instruments. Modern legislation uses financial instruments as a continuation of the concept of securities. However, one of the features of cryptocurrency is the absence of a single issuer, which makes it by its nature far from a security and, as a result, from a financial instrument.

FSB restrictions

Now let’s ask ourselves the question: “What information do many people propose to protect using blockchain?”

First of all, various types of documents are meant (for example, a credit/mortgage agreement or a purchase and sale agreement, or a document confirming the activities of a company, etc.), followed by confirmation of the direct transfer of funds (transfer from account to account, purchase in a store with a card , check cashing, etc.). In both options, it turns out that everything goes along the path of providing security for confidential data, and the blockchain, in turn, is a guarantor, or otherwise, means cryptographic protection information (CIPF).

Today, CIPF includes: encryption tools, imitation protection tools, electronic digital signature tools, coding tools, creation tools key documents, as well as the key documents themselves.

CIPF implemented in the personal information protection system requires the following mandatory parameters to be applied:

* Cryptographic means must work together with technical and software having the opportunity to influence the fulfillment of the demands put forward to him.

* To fulfill obligations to protect personal data when working with it, it is necessary to use crypto tools officially registered in the certification system of the FSB of Russia.

Cryptographic means, based on the level of security they provide, are correlated with the following classes (KS1, KS2, KS3, KB1, KB2, KA1). Introduction of cryptocurrencies of any class into protective system is determined by the category of the intruder (the subject of the attack), which in turn is determined by the operator in the threat model. All these criteria and safety classes are described in detail by order of the FSB of Russia dated July 10, 2014 No. 378.

The examples of cryptocurrencies have already indicated the encryption methods currently used, but none of them are recommended for use by the Federal Security Service- this is the first thing. Secondly, it is not yet entirely clear how implementations will be interpreted general concept blockchain. As you know, each of the cryptocurrencies is a modified Bitcoin; the changes concerned only the protocol and hashing algorithm. The protocol, in turn, can be absolutely free to implement—hence the question of which data will be encrypted and which will not. Also, what data will be hashed. Any software that encrypts information (especially user information) undergoes mandatory FSB certification. Certification is not complex process- in fact, no more difficult than writing software for a full life cycle: from scratch to commercial release. Main criterion certification is that all encryption algorithms (one-way, two-way symmetric or asymmetric) must comply with GOST and there is no escape from this.

Of all that GOST provides us with, there are standards 34.11-2012 and 34.11-94, which describe the data hashing algorithm. 34.11-2012 is a modern version of the standard 34.11-94 - let’s focus on it. It was developed by the Information Protection Center and special communication FSB of Russia with the participation of OJSC InfoTeKS. It is a fairly crypto-resistant algorithm, which allows it to be used in the implementation of blockchain technology, instead of the same SHA-256 or Ethash. If you are interested in the mathematical side of implementing the hashing method, then please go here - eprint.iacr.org.

It is quite expected that the implementation of blockchain using GOST 34.11-2012 may appear on the implementation market in the near future. The only question is: “When?” Considering that even the Central Bank of the Russian Federation is quite seriously looking towards using blockchain for data protection, then we can say that it will happen soon. In the meantime, we are in our present, where such a realization does not yet exist.

In general, Russia is still taking a wait-and-see approach to blockchain and cryptocurrencies. Foreign experience And best practics, and we can only wait and take our first steps.

Pavel Umnikov, Head of the control systems development department of InfoTeKS OJSC

If you want to get an answer to a question that concerns you on the topic corporate governance or tell us about interesting projects, cases and materials, write to us at boss@site

What are the advantages of blockchain technology? How does it work blockchain technology? What are the use cases for blockchain technology?

Optimists believe that in the near future, blockchain technologies will rid the world of bureaucracy, corruption, dishonest elections, Internet scammers and unfulfilled contractual obligations. Blockchain will save us all, and an era of prosperity and prosperity will come on Earth.

I don’t know how justified such rosy forecasts are, time will tell. One thing is clear so far: blockchain is truly a revolutionary, fundamentally different way of storing and transmitting information over a network, which has a lot of options for practical application.

Denis Kuderin is with you, an expert on financial and economic issues at the HeaterBober resource. I will tell, what are blockchain technologies, what are their advantages and how they work. I will also try to dispel the most common misconceptions and myths about blockchain and explain why Bitcoin is unlikely to replace traditional money in the next 10 years.

1. Blockchain – technologies of the future

If you still don't know what blockchain is, you're behind the times. Only the lazy don’t talk about blockchain these days. True, not everyone understands what kind of technology this is and what it is used with. They only know that Blockchain has something to do with Bitcoin, but it’s difficult to say exactly how.

Well, this article will dot the t’s and help you understand the essence, operating principle and practical meaning of blockchain.

Literally from English blockchain translates as “ block chain" The translation quite accurately reflects the essence of the phenomenon. Blocks of information are collected in a serial circuit and are protected by cryptographic encryption.

Chains of information are not stored on any separate server, but exist simultaneously on all computers connected to the network.

It is believed that the widespread introduction of blockchain technologies will change the whole world. Why? It's simple - thanks to the decentralization of the block chain, it cannot be changed - that is, hacked, forged, or generally controlled in any way.

Simultaneously there is no need for intermediaries when making transactions and any other transactions related to the transfer valuable information. Information is transmitted via the peer-2-peer protocol – from user to user.

Moreover, each participant has information about other participants, as well as access to the entire history of transactions made in the system.

Information is immediately available on all computers participating in the blockchain network

Blockchain – self-sufficient, but at the same time extremely open structure, which does not require third parties to operate. It was precisely this goal - the absence of intermediaries - that the creators of Bitcoin pursued when they developed a protocol for transferring cryptocurrency from user to user.

Digital money is transmitted over the network without the participation of assistants, which means there is no need for the services of banks and payment systems. At the same time, only its owner has the right to control the blockchain wallet. The money is not held by third parties (banks), and no one controls your expenses and transactions.

Not only monetary transactions, but also any other operations in which there is a risk of failure of one of the parties to fulfill certain conditions will be protected and secured by the blockchain procedure.

The areas of use of the “block chain” are diverse and numerous:

• monetary transactions;
• commercial contracts, agreements, transactions;
• purchases of services and goods;
• transfer of confidential information;
• insurance;
• protection and transfer of property rights;
• personal data management;
• archiving official documents;
• protection of intellectual property.

The blocks are linked into a chain using complex mathematical algorithms. Every new block joins strictly to the previous one, has a unique signature and timestamp. The addition of a new link to the chain is confirmed by each participant in the system and leads to automatic update registry

If a new block appears, information about it appears in all databases. To hack this system, you would need to gain access to more than half of all computers on the network, which is technically unlikely.

The attitude of government and financial institutions towards new technology is ambiguous. Governments fear that unregulated transactions will make life easier for illegal traffickers in weapons, drugs and human organs. Banks, exchanges and payment systems are afraid of being left out of business - if intermediaries are not needed, who will pay them?

At the same time, financial companies are showing great interest in blockchain, intending to make this technology work for them.

More than 40 largest banks even united in a consortium entitled R3, aimed at large-scale blockchain research. Participants R3 believe that the “block chain” is not an unambiguous evil for banks, but rather, on the contrary, an opportunity to reduce costs.

In particular, bankers are not against completely transferring interbank payments to a blockchain basis and completely abandoning the current system SWIFT.

In Russia, the attitude towards blockchain and cryptocurrencies is ambiguous. The government either proposes a complete ban, or calls for study. The Ministry of Finance is for criminal liability of persons using cryptocurrencies, and the head of Sberbank German Gref, as well as the head of the Central Bank Elvira Nabiullina, publicly support new technologies.

Resisting progress costs yourself more. Blockchain is already in effect, this must be taken into account, it must be used to one’s advantage and for the benefit of all humanity.

Interesting facts about Bitcoin and blockchain in this video:

2. What are the advantages of blockchain technology

The system has many advantages - it is decentralized, it's almost impossible to hack, and all information that is formed into blocks is automatically encrypted.

At the same time, the data that enters the blockchain cannot be changed retroactively - in theory, it is stored there forever and not on servers, but on every computer at the same time.

Many people are already calling the dissemination of information without copying new internet or internet of values. To get a general idea of ​​the technology, imagine a huge a database that has been duplicated thousands of times online and is regularly updated when new blocks are added to it.

This structure has many advantages - let's talk about them in detail.

1) Transparency of transactions

The blockchain network is in a state of constant consensus- that is, she regularly checks herself, conducting a kind of digital ecosystem audit. At the same time, all data embedded in the network remains transparent - information about all operations is available to every user.

For example, to see the entire history of Bitcoin transactions, just go to the resource BlockExplorer– information about all operations and transfers of this cryptocurrency is stored here.

2) Lack of a central server

Due to the lack of a centralized information repository, it is almost impossible to take control of the blockchain system– to change data across the entire network at once, you need unlimited computing power. The base is distributed among all participants, which means it remains almost invulnerable.

This is radical new approach to storing important data. Now any significant information stored somewhere. You bought a house, a car, registered a marriage, took out insurance or transferred money - all information about these transactions is recorded somewhere on the servers.

And any server can be hacked - any hacker will tell you that. And people who have access to the data can get into the database and change the information.

The high security of information in the Blockchain system is explained by the fact that data is stored simultaneously on all nodes of the system

Blockchain is built on a radically different principle - information is distributed across thousands, or even millions, of computers: It’s almost impossible to get into all the nodes at once and change the data.

3) Availability of a complete copy of the database for each user

Since each participant in the blockchain network has an updated copy of the database, there is no need to reconcile information with other users.

When a new transaction is entered into the chain, it is confirmed by all participants in the system. The chronological order of block distribution, as well as the data itself, cannot be changed.

Only its owner has the access key to a specific block of information (for example, to).

4) Fast and accurate transactions

A decentralized system with built-in hacking protection allows transactions to be carried out quickly, accurately and without intermediaries. Banks, exchangers, payment systems, notaries are no longer needed - the authenticity of transactions is checked and confirmed by all system participants.

Gaining popularity in business are based on the principle of accuracy. smart contracts– that is, smart contracts. A regular contract specifies the obligations of the parties, the conditions for fulfilling the agreement, and the consequences of violating the contract. There is always a risk that some will not be paid, and others will not get what they wanted.

A smart contract is based on a different principle. Such an agreement is executed only when certain conditions are achieved (the “if... then...” principle). You cannot violate a smart contract, nor can you change the terms retroactively.

5) Data encryption

Data that is formed into a block is encrypted in automatic mode. Cryptography is a guarantee complete safety data. Hashing in blockchains guarantees the irreversibility of the entire chain of transactions, and digital signatures and two types of keys make the information inside the blocks inaccessible to outsiders.

3. 5 ways to apply blockchain technology

In theory, the technology is applicable to any type of activity where there is a risk of deception, mistrust or errors in data transmission.

Let's look at the most promising and effective ways to use blockchain.

Method 1. Network administration

Blockchain plays a role in this case invulnerable key storage and user lists having the right to access any data - servers, terminals, ATM networks.

Technology protects against hacker attacks, server errors, network hacks and resolves the problem " single administrator».

Method 2: Storing digital certificates

Cryptography reliably protects information from unauthorized reading, modification, and distribution. Since certificates are stored not on servers, but on the network, it is impossible to gain illegal access to them, as well as to intercept user passwords.

Method 3. Confirmation of ownership rights

Confirmation and transfer of ownership will become simple, almost instantaneous and secure operations if blockchain technology is applied to this area.

It is enough for a person who has access to his block to enter it into the blockchain new information, and ownership information will be distributed throughout the system.

Method 4: Create a DNS system

Using blockchain, the distribution of names in domain networks will become absolutely safe. None DDoS attacks they will no longer be scary to ordinary citizens, financial or government organizations.

Method 5. Identification and confirmation of access rights

Already, some leading companies are using blockchain to identify their clients, employees and system users. Using a blockchain is much cheaper and more effective than any other method of protecting data and verifying access rights.

Application areas of blockchain – summary table:

4. How blockchain technology works – 5 main steps

The principle of operation of the block chain will become clear if we consider it using the example of a monetary transaction in cryptocurrency.

Since digital money is just blocks of information, the algorithm will be relevant for any blockchain operations.

Stage 1. Deciding on the transaction and transmitting it to the network

You have a Bitcoin wallet, and you want to pay with cryptocurrency for a purchase in an online store that accepts digital money. You make a decision to carry out a transaction and transmit your decision to a network consisting of peer nodes.

Stage 2. Transmission of the operation to the P2P network

The operation comes to computer network by using special algorithms. Automatically starts cryptographic encryption transaction and a new unique block is formed, which contains a link to the previous link and a timestamp.

Stage 3. Validation

The new block is sent to all nodes of the system for verification, and each node enters it into its database. The chain is updated, which is automatically and simultaneously reflected in the general registry.

The procedure for confirming a transaction and user status is called validation.

Stage 4. Confirmation of the transaction and creation of a new data block

After confirmation, the new block of data takes its unique place in the chain and becomes a full part of it. Information about the operation is available to all users, but the contents of the block itself are only to the one who has the private key.

Stage 5. Adding a new block to the chain

The recipient of the transaction receives bitcoins in his wallet, which is confirmed by both parties to the transaction. Each such transaction is a separate block, which becomes a full-fledged link in the chain. The authenticity and uniqueness of the new block is confirmed by all network participants.

5. 5 myths about blockchain – is it really reliable?

Despite all the advantages of blockchain technology, it is still far from perfect. Application in practice is associated with a number of difficulties and limitations..

In addition, there are several persistent misconceptions about blockchain that are either untrue or only partially true.

Myth 1. Blockchain is forever

It is believed that information recorded in blocks remains there forever. In theory this is possible, but not in practice. The growth in the capacity of hard drives simply does not keep pace with the growth in the volume of chains.

In addition to the fact that the database must be stored, applications for using the same cryptocurrency must also be downloaded to your computer if you want to use a full-fledged wallet.

Anyone who has done this at least once knows that this process takes more than one hour. And not even one day. It’s easier to use an online wallet, but then it won’t be quite a blockchain.

Myth 2. Blockchain is a giant distributed computer

Not quite like that, or rather, not like that at all. There is no distribution of functions or synergy. The data is simply duplicated many times. Each node in the system does the same thing - checks transactions, writes them into blocks, and stores history.

Myth 3. Blockchain will completely replace regular money

Unfortunately or fortunately, this is still far away. The Bitcoin system can process in a second maximum 7 operations. And transactions are recorded only once every 10 minutes. After this, you need to wait another 50 minutes to be sure.

The Bitcoin system will not yet replace the money we are used to, since so far the transaction processing speed allows only 7 operations per second

It takes hundreds of times less time to pay with regular money. The same Visa system performs thousands of operations per second and is capable of increasing capacity if necessary.

Myth 4. Blockchain is decentralized and therefore indestructible

Formally this is true - single center blockchain does not. But miners—those who keep the system running—are united in pools.

Mining communities are usually located somewhere in one location (for example, in China). This circumstance greatly simplifies the task of potential attackers who plan to destroy the Bitcoin system.

Myth 5. Blockchain openness is good

It depends. Anonymity is anonymity, but if Vasya transfers money to Petya, whom he knows personally, no pseudonyms will help here. Petya will know about all of Vasya’s financial transactions and vice versa.

For individuals This is still tolerable, but for companies to disclose their financial affairs to outsiders is extremely inappropriate. All transactions with counterparties, clients, sales and purchases will become known. And then goodbye trade secret.

6. Conclusion

Blockchain technologies are the future of humanity. But for now modern computers blockchains are not capable of providing computing power in the required volume. Therefore, before widespread implementation systems are still far away.

Question for readers

In your opinion, which cryptocurrency is the most profitable to invest in today?

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