Block chain
The block chain is an Ingenious Invention. It is an incorruptible digital of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
By allowing digital information to be distributed but not copied, block chain technology has created the backbone of a new type of internet.
Originally devised for the digital currency, Bitcoin, the tech community is now finding other Bitcoin has been called digital gold.
To date, the total value of the currency is close to $112 billion, and block chains can make other types of digital value.
Three Generations of Block chain Technology.
In the development of the internet, one can point to landmark events that can be used to divide the process into stages.
Among these important landmarks are the creation of the first wide-area computer networks in the 1960s, the development if an electronic mail system in the 1970s, the creation of ethernet later in that decade.
the launching of the world wide web in the 1970s and the creation if the first browsers and search engines later in that decade.
Following each of these hallmark developments the internet changed in a dramatic way. Each step was pivotal in creating the internet that we know.
In a similar waym it’s possible to look back on the developments of block chain and also divide it into stages, which are marked off by important developments and inventions.
Blockchain technology has only been in existence for a fraction of the time that the internet has, so it’s likely they there are still important developments to come. Even now, though, experts have begun to divide the history of block chain into at least three important stages.
Stage 1: Bitcoln and Digital Currencies While the ideas that would go into the blockchain were swirling around in computer science communities, it was the pseudonymous developer of bitcoin, Satoshi Nakamoto, who outlined the blockchain as we know it in the white paper for BTC.
In this way, blockchain technology began with bitcoin. In the earliest stages, blockchain set up the basic premise of a shared public ledger that supports a cryptocurency network.
Satoshi’s idea of blockchain makes use of 1 megabyte (MB) blocks of information on bitcoin transactions.
Blocks are linked together through a complex cryptographic verification processforming an immutable chain.
Even in its earliest guises, blockchain technology set up many of the central features of these systems, which remain today.
Indeed, bitcoin’s blockchain remains largely unchanged from these earliest efforts.
Stage 2: Smart Contracts: As time went on, developers began to believe that a blockchain could do more than simply document transactions.
Founders of ethereum, for instance, had the idea that assets and trust agreements could also benefit from blockchain management.
In this way, ethereum represents the second-generation of the blockchain technology.The major innovation about by ethereum was the advent of smart contracts.
Typically, contracts in the mainstream business world are managed between two separate entities, sometimes with other entities assisting in the oversight process. Smart contracts are those that are self-managing on a blockchain.
They are triggered by an event like the passing of an expiration date or the achievement of a particular price goal; in response, the smart contract manages itself, making adjustments as needed and without the input of outside entities.
At this point, many analysts believe that we are still in the process of hamessing the untapped potential of smart contracts.
Stage 3: The Future One of the major issues facing blockchain is scaling. Bitcoin remains troubled by transaction processing times and bottlenecking.
Many new digital currencies have attempted to revise their blockchains in order to accommodate these issues, but with varying degrees of success.
In the future, one of the most important developments paving the way for blockchain technology going forward will likely have to do with scalability.
Beyond this, new applications of blockchain technology are being discovered and implemented all the time.
It’s difficult to say exactly where these developments will lead the technology and the cryptocurrency industry as a whole.
Supporters of blockchain are likely to find this incredibly exciting; from their perspective, are living in a moment with an epochal technology that is continuing to grow and unfold.
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