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The strength of the block chain – Innovations with the backbone of bitcoin
Bitcoin is like a growing child; by trial and error grows crypto currency to reach puberty in the near future. The road to adulthood is still long and full of challenges, because there are questions put to the feasibility of the bitcoin, the stock price is volatile and technical implementations for a lot of people are too complex or abstract. Nevertheless, the bitcoin remains the minds engaged and there is plenty of innovation with new software, services and concepts, especially through the ‘internet generation’.
One of the main reasons for the continued operation of the bitcoinsysteem is that the underlying base, the so-called block chain, up to now a relatively solid system has been found, in spite of the decentralized model. The chain block allows two parties that do not know each other, without the intervention of a third party to enter into a transaction performed reliably, anonymously and without high costs. In addition, the block chain in bitcoinjargon plays the role of shared single source of truth, or the shared confidence in a shared transaction system. Each transaction is indeed implemented and monitored by a network of nodes.
In addition to the current implementation of the block chain, who as the general ledger for bitcointransacties defines the mechanism for more transaction types can be used, so have smart programmers and hackers handy now discovered. Start-ups are already working to develop systems to make stocks and bonds through virtual fairs works based on the local properties of the block chain. In the financial world would be plenty of features that work can be replaced on the basis of trust. Consider preparing a mortgage with a notary. By placing the mortgage contract in the block chain and verified, such a legal person may ever redundant.
Financial institutions in the Netherlands View the block chain with great interest. The three largest Dutch banks – ING, ABN Amro and Rabobank – were recently know that they are examining the block chain technology to see if it can form the basis for faster and cheaper banking transactions. Currently payments roughly only processed during business hours, a legacy from the past, making a transfer that is done only Monday is the beneficiary visible on Friday.
In this article we explore the background precise operation of the block chain, various software projects which have been inspired by this technology, and the potential pitfalls of such initiatives in general, and the block chain protocol in particular.Viewing:-225
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