How Come Block Chain Changes the World?

Have you ever heard of Block chain before? What exactly is Bloch Chain? How does it work?

Most people automatically associate Block Chain with Bitcoin. In reality, Bitcoin is just a subset of Block Chain – that is, Block chain is the platform that enables Bitcoin and other crypto currencies to be exchanged. 

In its elemental form, Block chain is a decentralized database system. Ledgers that store transaction data, are distributed across many nodes.

For example, think of a bank branch as a node. When you visit your local bank and deposit a sum of money, a transaction occurs. The bank verified the authenticity of the payment, records the transaction, and updates your account. Any problem with this process?

image credit: internet

Whenever you would like to engage in some form of trade and transfer ownership of an asset to another party, both you and the recipient must go through the bank to collectively approve of the transaction. The bank is the only (centralized) database storing your account information — it is a necessary third party for trades to occur. While banks have rules in place to control and govern the handling of money, it is difficult and costly to audit and prevent manipulation from happening. In essence the current system is slow, prone to errors, and liable to system tampering.

Block chain removes the need for a third-party intermediary to facilitate transactions of value, while also adding a layer of anonymity. When I engage in a transaction, my asset ownership information is already stored under a pseudonym. The network of Block chain nodes verifies my account, checking to see if my proposed transaction is in fact legal and feasible. When a valid transaction takes place, a series of mathematical principles cryptographically sign the data, providing a permanent stamp of approval. This data is then "hashed" onto the node's ledger, thus forming an immutable "chain" of transaction records. 

If I try to engage in fraud, or transfer money that I do not own, the nodes will instantly recognize this and halt the transaction.

How do Nodes Verify Transactions?

The truly disruptive potential of Block chain lies in its ability to provide a universal truth. When an individual node confirms a transaction, it will then notify every other node in the Block chain system, leading to every node's database being updated to account for the most recent transaction. This is why Block chain is often referred to as a distributed ledger system; each node contains the most up-to-date history of transactions. When all nodes in a system are agreeing with each other, there is only one source of truth.

Why is this significant?

Block chain is essentially impervious to fraud and corruption. If you tried to hack a specific node and change the details of a transaction (redirecting payments to another account, double-spending your money, or increasing the amount of money transferred), you'll find the task is near impossible to accomplish. Never mind the technical complexities of hacking a node. The reason you cannot change a transaction once it has been hashed, is that all decentralized nodes contain the same version of the (public) ledger. If there are 1000 nodes in a Block chain system, and you managed to hack one node, any revisions you make would automatically disagree with the ledger information stored in the other 999 nodes. If the nodes fail to reach a consensus, the proposed transaction is automatically stopped, thus drastically reducing fraud risk.

A New Age of Transparency?

Block chain is the harbinger of transparency. With all transaction records displayed in public, money laundering and fraudulent activities can be seriously reduced.  This may have major implications for corporations and governments, as corruption would easily be exposed. A public ledger truly democratizes knowledge and may lead to more efficient markets.

This is an important, albeit small subset of what Block chain can accomplish. Any transaction that involves an exchange can theoretically utilize Block chain; from capital markets to healthcare and voting, the possibilities are limitless.

Popular services in global trade:

financial support-$100,000, buy now, pay later

credit inquiry-know your partner's credit status to avoid trade risk

factory inspection/loading monitor/trade assurance

Follow us:

You can also contact eGTCP.com directly via mail (service@egtcp.com) or phone (+86 400-159-8448).

                                                             

Bitcoin tumbles at new year

Bitcoin is already having a bad year.

For the first time since 2015, the cryptocurrency began a new year by tumbling, extending its slide from a record $19,511 reached on Dec. 18.

The virtual coin traded at $13,440 as of 3:55 p.m. in New York, down by 6.1 percent from Friday, according to data compiled by Bloomberg. That’s also a fall from the $14,156 it hit Sunday, according to coinmarketcap.com, which tracks daily prices.

Wrong Foot

Bitcoin is having an unusually bad first day of the year

source: Coinmarketcap.com

Percentage changes reflect bitcoin's rise or fall on Jan. 1 compared with the previous day. The figure for 2018 reflects the cryptocurrency's price as of 3:45 p.m. in New York.

Bitcoin got off to a much stronger start last year, and then kept that momentum going, eventually creating a global frenzy for cryptocurrencies. In a sign of its phenomenal price gain in 2017, it rose by 3.6 percent on the first day of 2017 to $998, data from coinmarketcap.com showed. It ended the year up more than 1,300 percent.

That rally drew a growing number of competitors and last month brought bitcoin to Wall Street in the form of futures contracts. It reached the Dec. 18 peak hours after CME Group Inc. debuted its derivatives agreements, which some traders said would encourage short position-taking.

Free services in global trade:

Follow us:

You can also contact eGTCP.com directly via mail or phone.

Email: service@egtcp.com Tel: +86 400-159-8448