About the blockchain in simple words

Let's deal with one of the key concepts of the cryptocurrency market, without which it is impossible to understand its functioning.

We will talk about the blockchain, which was first used in 2008 by a person or group of people under the pseudonym Satoshi Nakomoto.

In fact, those who are familiar with the English language could already guess about what will be discussed, because block is a block, and chain is a chain. In other words, the blockchain is nothing more than a chain of blocks in which information about all transactions is stored. That is, all records in this digital database are presented in the form of blocks, and all blocks are interconnected by special keys. At the same time, each new block contains information about the previous one, and together they form a single unbroken system.

What is the difference between a blockchain and a regular database? Firstly, the guaranteed safety of all information. If some information can be erased from a standard database, then in the case of blockchain it is impossible - records cannot be deleted, only added. The next advantage is decentralization. This means that all information is stored not on one computer or device that can be hacked or destroyed, but on multiple computers at the same time. Therefore, if one or even several of them fail, it will not negatively affect the entire system. At the same time, all such computers are connected to each other on the Internet. If we think figuratively, then the blockchain can be represented in the form of a necklace with a very solid foundation that cannot be torn and on which new beads-blocks are strung.

It is not surprising that this technology is actively used to carry out operations with cryptocurrencies. The process of transferring funds takes a few minutes, while it is impossible to lose or counterfeit money, and there are no intermediaries either. That is, fraud and corruption are excluded. This approach has led to the fact that today the blockchain has ceased to be a purely cryptocurrency concept - it is actively used in banking, manufacturing, trade and even cybersecurity. And a couple of years ago, at the World Economic Forum in Davos, a forecast was announced that by 2027, 10% of the world's GDP will be stored in blockchain networks.

Thus, today blockchain is a reliable and extremely promising technology that changes the perception of transactions and transactions in a variety of industries. It has already been appreciated in trade and the field of settlements, and among the possible applications in the future there is even assistance to the state in holding elections, since it is the blockchain that can ensure an impartial and honest accounting of the data and indicators obtained.

The GRIN4 ecosystem

We have created a bot to make money on crypto exchanges. You set the settings, and he trades 24/7. Manage all assets from one service: with your own hands or with the help of algorithmic trading. Anonymously. Simply. Stress-free.