Blockchain Architecture: Technical Brief

Just recently, on October 31, 2018, Bitcoin celebrated its first anniversary – the first cryptocurrency turned 10 years old. Now almost all modern people have heard about Bitcoin. But only few of them can clearly and concisely answer the question: what are cryptocurrencies, and moreover, what is blockchain? In this article we will try to describe in simple words, what blockchain is and how it works.

Content:
(please, click the topic to scroll down to it)

  1. The history of creation and a brief description of Blockchain
  2. Technical Brief
  3. Private and public blockchain
  4. Advantages and disadvantages of blockchain technology
  5. Conclusion

 

1.  The history of creation and a brief description of Blockchain

Blockchain technology is the basis of cryptocurrency, and since recently it is being applied in other areas of life. From its name it becomes clear that, in fact, it is a chain of interconnected blocks.

The most important feature of the Blockchain technology is decentralization. That means, that the network operability is provided not by a single center, but by all its participants at the same time. For ease of understanding, the principle of operation of the blockchain can be compared with Torrent, where the user and the server are the same. Files that are downloaded from the tracker, are not located on the central server – they are stored by other users. Operations in the blockchain occur exclusively between users, without any intermediaries as well.

The term “blockchain” was first used on October 31, 2008. On the same day, the mysterious creator of Bitcoin Satoshi Nakamoto published his legendary article “Bitcoin: a one-time electronic monetary system.” The Bitcoin network was launched in early January 2009. But the concept of the modern blockchain itself was announced in the 1990s. Satoshi Nakamoto has put a lot of effort into the systematization of cryptographic works, which has been published over the past 20-25 years.

2. Technical Brief

We will not go delve into of cryptography, use narrowly defined terms and draw complex graphs. Firstly, 99.99% of people simply will not understand this (including us), and secondly, in order to open this topic completely, not one article, but an entire book is needed. In this article we are talking only about the basics of the architecture of blockchain systems.

So, the blockchain ledger can be conditionally compared with a book. It contains blocks that can be called “pages” of this book. Each block has a name that contains information about the previous block and the key from the next one. This is called a “chain of blocks”. All information is contained in an encrypted HASH. The keys from blocks are found by miners who maintain network performance.

3. Private and public blockchain

We all are used to associate blockchain with finances only, and more specifically with cryptocurrencies. But it is worth noting, that this technology is much more versatile, it can be applied in other areas of life, such as:

  • logistics;
  • identification;
  • proof of intellectual property rights;
  • voting;
  • music;
  • charity;
  • property;
  • etc.

The Bitcoin or any other cryptocurrency network uses a public blockchain, the keys of which are publicly available. It is perfect for the concept of cryptocurrency, but it cannot be used to maintain the workflow of private companies. The private blockchain is perfect for this. Lately it causes increased interest in many companies. For example, it can be used for tracking of goods trade and shipping companies. Such a solution will significantly reduce costs, as well as eradicate all sorts of fraud.

4. Advantages and disadvantages of blockchain technology

First, let’s talk about the advantages:

  • Decentralization. Such network is almost impossible to be closed, because for this it is necessary to disconnect all its members from the network.
  • Safety and reliability. Technical features of the technology exclude falsification, data fraud, and hacker attacks.
  • Versatility. This technology is predicted a great future, because it can be used in various industries.

Unfortunately, the blockchain technology is not perfect and has several disadvantages:

  • Scaling issues.
  • Irreversibility of operations. After the operation was recorded in blockchain, it is impossible to cancel it, even if it was done by mistake.

5. Conclusion

Blockchain technology can cardinally change our lives. Only narrow specialists are able to understand all mechanisms of its work. Basic principles, which we discussed in this article, will be enough for the vast majority of people.

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When Will Finally Growth Happen? Or Fresh Forecasts of Cryptocurrency Analysts

As we all remember, the 2018th year was far from the best in the history of Bitcoin as well as other cryptocurrencies. For the previous year, the first cryptocurrency slipped from $20,000 to $3,200. As of this writing, one BTC coin costs $3,940.

Perceptible revival in the cryptocurrency market has provoked another dose of optimistic statements from analysts. Let’s take a look at what professional traders and cryptocurrency market experts are saying about the immediate prospects for the Bitcoin rate.

Leah Wald

A professional trader, and in the past, World Bank economist Leah Wald, claims that the rate of the main cryptocurrency will fall to a critical level of $1,500, and only after that, new growth can begin, up to $6,500. But the user with the nickname Filb Filb doubts her prediction and claims that BTC has already “found its bottom” and now only the growth up to $6,000 and higher is waiting for us.

Leah Wald is confident in her forecast, so she decided to make a bet with her opponent – in case her prediction turns out to be wrong, she will have to transfer 1 Bitcoin to the user Filb Filb.

Cane IslandCrypto

An analyst from Texas, who is known on Twitter under the nickname Cane IslandCrypto recently published his own vision of the BTC price behavior in the coming years. So, he believes that a long and confident uptrend is waiting for us:

  • until the end of 2019, the BTC course will be $7,800;
  • in 2021 – $28,627;
  • in 2023 – $93,382;
  • in 2026 – $471,532.

He is confident that the bear market is over and only growth is waiting for us in the coming years.

Canaccord Genuity CapitalMarkets

A group of leading analysts of Canadian financial institutions Canaccord Genuity CapitalMarkets has a similar opinion about the rate of the first cryptocurrency. They believe that in two years Bitcoin will return to its peak values and go higher.

To create the own Bitcoin price chart, analysts were guided by historical data for 6 years (from 2011 to 2017). After analyzing the behavior of BTC, they came to the conclusion that at the moment the price of the asset has already “found the bottom”. And in the near future, the BTC course should start its growth.

Conclusion

If we analyze this information, we can conclude that the mood of market participants is beginning to change for the better. So far, the Bitcoin rate shows growing, even though slow: in recent months it has grown from $3,200 to $3,940 and continues to ascend. The nearest psychological mark is at the level of $4,000 – $4,100.

We will closely follow the latest news from the cryptocurrency world. If you always want to stay up to date with the latest events, then follow the updates on our website or subscribe to us on social networks.

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Bitcoin Overcame Psychological $4000 Mark: Rate Chart

The weekend begins well: today on March 16th, 2019, Bitcoin rate broke another psychological mark of 4 thousand dollars.

Half-hour graph from cryptocurrency exchange Bitstamp Source: TradingView

In the graph above we can see that not only Bitcoin has increased, but also trading volume. As expected, almost all the coins followed Bitcoin.

Source: Coinmarketcap

This is exactly how Top-10 cryptocurrencies looks like. Bitcoin Cash showed the maximum growth in the last 24-hours, it managed to grow by 14%, the second place in the growth dynamic takes Litecoin with 6,61%.

What is it – the final verge of a trend or another market manipulation? We will follow developments and provide you with the latest information.

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Cryptocurrency Prices Today, March 12: Cryptocurrencies Remain Stable

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcoin (BTC) remained stable over the past 24 hours and slightly increased in price by 0.04%. The price at the time of writing is $3893 per coin.

For the most part, cryptocurrencies are showing growth:

Bitcoin Cash added 0.6%, Bitcoin SV lost 1.4%, the value of coins is $128 and $65, respectively;

Ripple dropped by 0.4% and costs $0.31;

EOS gained 3%, and its price is $3.71;

Litecoin added 3.2%, and its value is $56;

Cardano increased by 5.7%, and its cost $0.047;

Stellar lost 4.6% and costs $0.10;

IOTA grew by 1.4%, and its value is $0.28;

Dash increased by 4.4%, and its price $84;

Monero added 2% and costs $50.

Over the past 24 hours, Ethereum added just 0.2%. The rate of the coin is $133.

The total market capitalization is $134 billion. Bitcoin accounts for 51.4% of the total volume. In monetary terms, this is $69 billion.

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Crypto and Bolivar in Venezuela: What is Good Money And What is Bad Money?

According to the news outlets, Venezuela has tumbled into darkness since last week. Such a massive blackout is influencing the country’s economy, to be more specific, its remains. Venezuelan economist, professor Aaron Olmos, shared some thoughts considering crypto and its adoption in the country during his recent interview to Coindesk.

Blackout, Economy, Crypto

Once the wealthiest country in the Latin America now is suffering a devastating blackout which has already caused at least 15 victims. The power plant Guri went down, thus, left millions of Venezuelan without electricity: schools, public transport, airport remain closed since Friday, March 8. The opposition leader, Juan Guaido, plans to announce a “state of alarm” in the National Assembly on March, 11.

Such critical situation is caused by years of power usurpation, corruption, incompetence, and high rates of inflation, which hit 80,000% in 2018. As national currency – Bolivar – became valueless, people started mining and trading crypto, in particular, Bitcoin. In the middle of February, the Bitcoin trading hit all-time high. It has become the only way to feed Venezuelan families. Bitcoin mining requires electricity access. Since the blackout has been continuing for 5 days already, even this way of feeding of taken away.

In 2017, Nicolas Maduro announced creation of national cryptocurrency – Petro. However, no one is quite sure how much it costs, as of 2019, it does not function as currency.

Good Money Vs. Bad Money

The Venezuela’s most famous economist, Aaron Olmos, shared his thoughts on the subject of his country’s current dependency on the US dollar, as well as crypto’s place in Venezuela. He thinks that the current state of economy is a result of poor economic administration, this lead to the fast adoption of crypto, as national currency remains devalued Bolivar.

“We are in a complicated situation because ‘good money’ –  dollars or cryptocurrency – is available, but it is scarce because people tend to keep it, not spend it. On the other hand our ‘bad money,’ the Bolivar, it’s the one used by law.”

The economist also pointed out that large bills are limited, whilst small ones are constantly being issued.

“This creates a distortion in the price of goods and services since the production value is now based in dollars in the internal market,” he explains. “Everybody knows it: the Bolivar is our official currency in circulation, but the actual functional currency is the US dollar.”

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Cryptocurrency Prices Today, March 5: Cryptocurrency Is Slightly Growing

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcoin (BTC) remained stable over the past 24 hours and added 0.4%. The price at the time of writing is $3754 per coin.

Cryptocurrencies moved to the green zone:

Bitcoin Cash added 2.28%, Bitcoin SV grew by 3.46%, the cost of the coins is $125 and $65 correspondingly;

Ripple gained 1.13% and costs $0.30;

EOS increased by 5.6%, and its price is $3.36;

Litecoin added 2.11%, and its value is $46;

Cardano grew by 3.13%, and its cost is $0.041;

Stellar added 1.27% and costs $0.083;

IOTA increased by 1.69%, and its cost is $0.27;

Dash became more expensive by 1.68%, and its price is $78;

Monero added 0.88% and costs $47.

Over the past 24 hours, Ethereum added 2.9%. The exchange rate of the coin is $128.

The total market capitalization is $127 billion. Bitcoin accounts for 52.1% of the total volume. In monetary terms it is $66 billion.

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Bitcoin Miners Are Fooling Around While Earning Tens of Millions of Dollars

According to the recent research made by Diar: Bitcoin, Ethereum, Litecoin, and Dash miners made more than $18 billion without any transaction.

Let us start with the two most famous cryptocurrency – Bitcoin and Ethereum. These two coins were the most popular proof-of-work blockchains, however, they processed the fewest amount of empty blocks, the report shows that Ethereum paid out $65 million in rewards for such blocks in 2017.

Bitcoin Cash, in his turn, has created more than 3300 empty blocks since the end of summer of 2017. It means that monthly about $5 million was gained across all networks. Moreover, Bitcoin Cash miners have earned more than $1 billion since its for on November 15, 2018.

Litecoin is a fast cryptocurrency, and due to its network underutilization, the coin has the most empty blocks. Litecoin miners are mostly hunting for lite blocks, thus its block time is considered to be about 2 minutes. Indeed, the time varies from the difficulty of mining, but in overall every 2 mins, the block is created.

The report suggests miners “fooling around”, because a lack of transactions rises up their reward by far less than gaining the block reward. Let us look on the example.

Block 1586699 which was processed on Tuesday has only transaction less than 1 LTC, nonetheless, the block paid out the mining reward of 25 LTC. It means that the miner has made over $1000 to process less than $50. There is another example, block 1586709, the miner has earned more than $1000 for processing $0 in transactions. Unfortunately, there is no such a thing in the fiat world.

We remind you

How to Get Bitcoin And How Profitable is Mining in 2019

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