As a hot technology, block chain has been applied in many fields. Bitcoin is one of them. As Internet er, it is necessary for us to understand the value of blockchain and how it works in order to better apply it in practical scenarios.
1) What problems does blockchain technology solve?
In our real life, the transactions between people, people and companies, and between companies all need the support of public trust. Public credibility refers to the trust of fairness, justice, openness, humanity, democracy and responsibility displayed by public power in the face of time difference, public communication and interest exchange in social life.
At present, public credibility is generally provided by the government, state organs or third-party organizations authorized by the government. In plain English, credibility is the power to make the public trust.
So what happens when credibility is in question? High-risk Internet P2P products advertised during prime time on CCTV raised more than 50 billion yuan in illegal funds a year. A kindergarten child abuse incident, but ultimately unable to restore the truth. These kinds of things happen all the time, and along with these problems, a technological solution to public credibility begins to attract attention.
This is called “blockchain”.
Block chain technology can well satisfy the needs of credibility, and credibility of abstracting as an independent organisation control by a government or a third party of the existence of the formation of the government, the public, chain blocks, and new pattern of “gongxin CPA” credibility to supervise each other, that is, trust is built on block chain, rather than controlled by a single organization, such credibility can be cross validation and supervision, To be realized and guaranteed.
2) What is the core principle of blockchain?
A Block is a concept created by Bitcoin and can be understood as a ledger that records information about bitcoin transactions. Each block contains the following three elements:
1. ID of the block; 2. A number of transaction orders; 3. ID of the previous block;
The Bitcoin system creates a block every 10 minutes that records all transactions that take place during that time. Since each block contains the ID of the previous block, the previous block can be found by this ID, and so on, all the way back to the original block, thus generating a complete transaction chain, forming the blockchain.
Thus, a blockchain is a string of data blocks associated using cryptography, each containing the entire transaction information of the system over a period of time. In the case of Bitcoin, the entire blockchain is the public ledger that records bitcoin transactions, and every block in the network has a backup of bitcoin transactions.
When a Bitcoin transaction is initiated, the information is broadcast to the network, and the miners, who have gained legal billing rights by competing their computing power, record the information into a new block that is connected to the blockchain. Once recorded, the information cannot be tampered with.
Blockchain is the core and infrastructure of Bitcoin. It has four characteristics: decentralization, distrust, collective maintenance and reliable database.
1. Decentralization The entire network has no centralized hardware or management organization, and the rights and obligations between any nodes are equal. Moreover, the damage or loss of a node will not affect the operation of the entire system.
2, to trust the data exchange between each node involved in the whole system is not to trust each other. The operation rules of the whole system are open and transparent, and all data content is also open. Therefore, within the rule range and time range specified by the system, nodes cannot and cannot deceive other nodes.
3. Data blocks in the collective maintenance system are jointly maintained by all nodes with maintenance functions in the whole system, and these nodes with maintenance functions are accessible to anyone.
4. Reliable database The whole system will be in the form of distributed database, so that each participating node can get a copy of the complete database. Unless you can control more than 51% of the nodes in the entire system at the same time, changes to the database on a single node are not valid, nor can they affect the data content on other nodes. Therefore, the more nodes and computing power in the system, the higher the data security of the system.