The underlying technology of blockchain (reasons for the emergence of blockchain)

What is the underlying technology of blockchain? Blockchain appears as the underlying technology of what? What is a distributed ledger? Blockchain is a new economic system based on decentralized consensus mechanisms and smart contracts, composed of a network of many participants, forming a new network ecosystem.

One of the topics we discuss today is what is blockchain? How will it play a role in the financial field? The author of this article is Dr. Wang Xiaoyun. This article mainly introduces “cryptocurrencies dominated by Bitcoin (BTC)” and several other types of digital currencies, such as Litecoin and Monero. Does the concept of Ethereum mainnet launch relate to ICO? I believe that many people would say that this concept has existed for a long time, but very few people actually started using it – like scholars like Vitalik Buterin, who even Warren Buffett didn’t know what they were researching… So if you are not clear, don’t mention blockchain… In fact, for ordinary people, “Ethereum is a peer-to-peer electronic cash system,” and it can be infinitely scalable and interoperable, but not all information is publicly transparent and verifiable. What is blockchain? Through blockchain, any asset or value transfer can be achieved without relying on trusted intermediaries to complete transactions, making transactions faster and more cost-effective; in addition, due to the characteristics of immutability and traceability of blockchain, it can also ensure the secure transmission of data without being manipulated or destroyed by malicious actors, and prevent hackers from stealing user passwords or private keys, making it easy for developers to find and confirm if their accounts comply with relevant regulations. In simple terms, people think that blockchain is a very complex technology, just like the Internet, because almost all information on the Internet is publicly available and unchangeable, so blockchain is a solution to ensure the authenticity of individuals. However, for many people who do not have physical asset records, they just want to know where this content is and who owns it. That is why many people refer to this possibility as “blockchain”. To some extent, “Bitcoin”, Bitcoin Cash (BCH), and even some currencies with codes such as Bitcoin and Monero, although they do not actually provide specific application scenarios. In fact, Bitcoin is still being traded globally. In fact, Bitcoin is also one of the tools used to store Bitcoin and other non-standard assets. As more and more users enter this platform, the price of Bitcoin will also rise, especially now during the bear market in 2017. Currently, the price trend of Bitcoin does not seem to well reflect the interest of investors in its price performance, after all, Bitcoin itself has not yet received enough support to prove this point. (ChainDeDe)

Reasons for the emergence of blockchain

The emergence of blockchain is due to people’s insufficient understanding of Bitcoin, and the application of this type of technology has not met the expectations in many industries. However, this situation is changing the relationships and value exchange modes among participants in the entire financial system.

We all know that blockchain is a distributed database or encrypted digital signature system. It allows anyone to view and make transactions, as well as record all information (including ledger data) without the need for centralized institutions. Private keys, public keys, or other passwords can be stored on devices on the network.

When a person puts something on their computer, they use this software to generate a document to prove its authenticity. Then, through this program, an accounting method is created, which ensures that you have the right to access all the content of that document. Therefore, the development of blockchain will bring more opportunities for application, but it may also cause bigger problems. Because currently, most countries have a negative attitude towards blockchain compared to traditional monetary policies, and the economic activities of each country are being restricted in this process. Therefore, the main reason for the emergence of blockchain is to solve the trust issue.