Published on August 28th, 2018 | by Guest

The reason behind Bitcoin success and cryptocurrencies security – Blockchain technology

There isn’t doubt about it, Bitcoin is the most successful currency of all time whenever it’s virtual currencies or real ones. Just in few months it could grow from barely one thousand dollars price to crazy twenty thousand dollars and it could maintain that growth for a long time!

Bitcoin is crypto currency created back in 2010 and with one hundred Bitcoins you could barely buy a pizza. It started to grow fast and reached mind blowing insights after insights.

In just several years the price of Bitcoin reached thousands of dollars and grew over 20K in 2017. It got attention of the whole world and every kid, adult, expert and non-expert were talking about it.

Some people saw incredible gain just by investing few dollars in Bitcoin and others found out a way to find Bitcoin for free – mining.

In the past, mining was easily done by PCs but with massive growth of Bitcoin popularity mining competition also grew rapidly. So smart people started looking for new ways to mine Bitcoins and on the other hand, smarter people created companies that produced and sold thousands of miners every month.

With every release of new miners, old ones was becoming more and more less profitable and finally it all came to huge mess – you would buy a 2000$ worth miner that could generate 500$+ worth of Bitcoins per month and few months later with release of new model your monthly Bitcoin generation would decrease greatly and you couldn’t even earn 200$ per month.

The worst thing, the earnings would go down and down every month as competition were growing super-fast.

Still, Bitcoin was most profitable business if you would invest money in it or start mining a bit earlier.

It is easy to send and receive Bitcoins, there are a lot of websites that let you transfer Bitcoins in just few seconds for only 0.08% fee or even less. That’s more than 10 times cheaper than sending and receiving money via Banks, PayPal or any similar service.

Another huge advantage of Bitcoin is that it can’t be manipulated or controlled by anybody, not by hackers, not by big brands, not by government and nobody can charge you any additional fees.

All the flexibility, low prices and highest security allowed Bitcoin to conquer the world and become super successful currency.

To archive all these possibilities cryptocurrencies needed some revolutionary technology that would allow them to do everything and anything and to be unmatched even by big companies and government. That’s how Blockchain was created!

Blockchain – the game changer technology

Originally Blockchain was created especially for cryptocurrencies but as it is very smart and useful technology that can bring unmatched security and flexibility at a very cheap rate, it quickly became the choice of many.

Before digging down deeper into Blockchain it’s important to have an understanding of how the system actually works. As its very complex system, there is no need to explore every deep detail if you don’t need blockchain certification and don’t aim for becoming a blockchain developer that’s very hard but high income job.

For general understanding, all you need to know is how Blockchain system saves and process information.

Blockchain is just blocks of information connected with one another with chains and all of that uploaded in the cloud networks contacted with thousands of computers.

Each block contains information, a set of scripts that can’t be edited, changed or deleted by anybody, even root users and sysadmins can’t modify it. If it’s required to update the file, it’s a must to add new block with updated information, original block stays untouched so anyone can monitor the change and see what was changed and why.

Also, to add new block all computer in the network must process the file, run it against several security checks and after that approve new block additional.

This way it’s impossible to insert any malicious code or block as it would be required to hack all computers at the same time. It’s not possible even for elite group of hackers to hack thousands of computers simultaneously while all of them are connected and synchronised.

Because of this level security, Blockchain eliminates need of any additional security checks, rules and firewalls, thus slightly reduces all costs and makes ultimate security cheapest for everyone.

Blockchain’s cloud based working system is the ultimate defense against any cyber attacks and lets it process blocks faster and give most flexibility to any application that uses it.

Tags: Bitcoin, Blockchain, cryptocurrencies, cryptocurrency