Pionet's experts make some sense of all the buzz words that you've been hearing recently…
What is Blockchain?
BlockChain is a new method for transferring collaborative information over the Internet infrastructure. The basis is distributed systems where all databases and transactions are stored at different nodes on the Internet and replicated to everyone. Each transaction is encrypted and stored in connection with the previous transaction and the next transaction - which prevents loopholes or clones because if one transaction is erroneous, the whole chain is defined as "broken". It is the Internet that "manages" the Blockchain and not one central entity, because there are many endpoints that share the information about the transactions.
Each such endpoint or node, takes part in several processes:
- Creating (mining) digital currencies
- Transaction maintenance and operation
- Handling of "smart contracts" - a new type of "block" in the Ethereum network
- Basic wallet operations.
Cryptocurrency - Virtual currencies
The cryptocurrency is an independently managed investment and trading center, not managed by any formal entity. Transaction values are determined by the users and transactions are carried out using the Blockchain technology. The virtual currency market is currently estimated at billions of dollars, with market valuations to be many trillions of dollars within the next 10 years.