Blockchain technology which combines cryptography and decentralized peer-to-peer exchange has a bright future ahead of it. It opens the way to the “internet of transactions” and is preparing to shape the web of tomorrow and revolutionize the digital economy.
Blockchain, an innovative it system
The web continues to evolve: the era of web 3.0 or internet of things quickly followed 2.0 or social web but if you talk a lot about big data and connected objects, blockchain technology often seem to forget that in parallel, another revolution is emerging: that of blockchain technology. And you have to accept that there are Surprising factsthatyou cannot ignore.
The principle of blockchain technology
Blockchain, is the implementation of the solution of a mathematical problem called problem of the byzantine generals which consists in ensuring that a set of computer components working between them can manage failures or malicious acts. This cryptographic protocol is in theory inviolable since it must be able to maintain its reliability in the event that a minority share of the components sends erroneous or malicious information to circumvent the verification of double spending.
Bitcoin: cryptocurrency from the blockchain
Bitcoin happens to be a real currency in the wisdom that it is non-perishable, identifiable (as with banknotes, each bitcoin has its own number) and is impossible to counterfeit. This is even his great strength. It is also easy to transport and store: a computer and / or a smartphone is enough. A bitcoin is also fungible since it is interchangeable with another bitcoin. Bitcoin is also divisible: a bitcoin is subdivided into 100 million units, called satoshis.
Bitcoin: a real currency accepted by all?
In view of these properties, bitcoin is therefore a currency and should therefore be a widely accepted means of payment, even a store of value. The situation is very different. This intangible currency or currency, like all other cryptocurrencies, which allows its holder to buy goods and services on the internet, has no central bank or any central body, unlike conventional currencies. They grow apart from financial institutions and rely solely on a vast over-the-counter network on the internet even if the regulator of the commodity market in the united states, the commodity futures trading commission (cftc), has officially declared in september 2015 that bitcoin falls into the commodity category,
Blockchain: the rise of a new technology
Far from being confined to the mixed success of bitcoin, blockchain technology is the subject of growing interest by actors in the world of finance for the multiple possibilities it offers in all sectors where a trusted third party operates.
The financial sector in the blockchain era
Blockchain, the technology for storing decentralized information and decentralized protocols for verifying exchanges, interests not only governments but also banks and, far beyond, all economic players. Besides, finance will remain the first blockchain market in the coming decade. Blockchain could reduce payment costs and, more generally, transaction costs by eliminating certain intermediaries.