CRYPTOCURRENCIES AND BLOCKCHAIN HISTORY AND MARKET PROSPECTS
In spring 2010, programmer Laszlo Hanesh ordered two pizzas, paying 10,000 Bitcoin for jokes - a cryptocurrency that was little known at the time. If Laszlo keeps safe the money, he will have about $ 30 million today.
Bitcoin appeared in the fall of 2008, when Nakamoto's Satoshi programmer (he still could not divulge his identity, a group of people could hide under this pseudonym) published short documents on the Internet containing the algorithm of the quasi-currency tool has been described. In less than nine years, the Bitcoin ecosystem has reached a capitalization of nearly $ 53 billion and payments of $ 40 million. There is another cryptocurrency: There are now more than 200.
There are two types of participants in the Bitcoin ecosystem: regular users and miners. The first commit transaction, the second, which uses special software to process it. Many people hope that the blockchain technology on which the system is based will change the world. Even if the revolution has not yet occurred, it still finds the extent of this power.
Startups fighting for investors have spent millions of dollars on issuing and selling cryptocurrencies (ICO, initial issue of coins, similar to traditional IPOs, issue of corporate stock). According to research firm Smith & Crown, corporate blockchain attracted more than US $ 1 billion through ICO in the first half of 2017 - a ten-fold increase over 2016.
ALGORITHM INSTEAD OF INTERMEDIARY
The Byzantine army surrounded the city. Generals must develop a strategy of joint action, even if there are traitors who lead to victory, and intentionally misrepresent information about the size of their troops and the timing of the attack.
This is not part of the historical chronicle. This is how the mission of the "Byzantine General" was formulated - a classic of cryptography. It is about coordinating the actions of system participants who are pursuing a goal but have no mutual trust.
If you do not use math tools, it's obvious that creating a single control and a single controller ensures that system members get the reliability of the information. In the case of General Byzantine, this could be a loyalty committee of the emperor, they crossed all the troops and coordinated their plans.
For centuries humanity has followed this path. Banks and payment systems are guarantors of transfers. In public relations, this task is performed by a notary, and the election commission reviews the results of political elections.
In 2008, Satoshi Nakamoto found a new way to achieve a social consensus that confirms the authenticity of all transactions without the involvement of third parties. The easiest way to demonstrate this is to briefly explain the basics of working in blockchain technology using Bitcoin transmission as an example.
In 2013, the development of blockchain technology was seriously encouraged by a young Canadian programmer from Russia, Vitalik Buterin. He realized that in addition to the transactions in the blockchain, you can register information about all events. This system can also be integrated software that can be used to create applications that operate on the "smart contracts" principle - stand-alone programs that run under certain conditions.
One of the first to test "Smart Contracts" was chosen by German developers from the Slock.it projects. Your idea is to create smart keys. It is proposed to install such locks on leased real estate: from bicycles to cars to apartments. The castle owner indicates the rent, the tenant pays this after opening and closing the castle after the expiry of the lease to Ethereum.
The creator of Slock.it is not limited to connecting blocks and the Internet, and has begun building the world's first decentralized autonomous DAO organization based on Ethereum. They founded it as a New Generation Venture Fund, a closed-end, investor-managed organization - owners of DAO tokens. The sales token started on April 30, 2016. And for more than four weeks, more than 11,000 people have invested in DAO in Ethereum, which equals $ 150 million.
However, the problem has reached an ethical level: There is a group of fans who think that platform incompetence is more important than compensating for losses in DAO. For this reason, there are two parallel universes: Ethereum Classic, from which the money was withdrawn, and Ethereum, which has survived the hard work. Cryptocurrency is also presented in two ways. At the same time, the classic Ethereum (ETC) costs around $ 17 and is mandated (ETH) - $ 200. In the spring of 2017, Ethereum Classic decided to reform its monetary policy and move closer to Bitcoin (at least to increase the exchange rate of its own currency). The platform owner introduces emission limits (maximum of $ 230 million in Ethereum) and rules to reduce premiums for miners (by 20% after every five million blocks).
the races for computing power has reached a level where extraction is no longer economical. The maximum block size of one megabyte allows miners to process no more than seven transactions per second. In the Visa and MasterCard payment system, this number is two thousand and the capacity is many times smaller than for miners. Of course, you can increase the miner's commission, but it can destroy the economy of bitcoins. Therefore, you should look for a technical solution that increases the number of transactions in a unit.
There are two opposing views on this topic. The first is the Bitcoin core group. It is recommended to enable multiple updates simultaneously (first Segregated Witness, SegWit protocol). These operations should reduce the amount of "secondary" information that the network participants process and make room for transactions.
The second group, called Unlimited Bitcoin, immediately increases the block size to 2 megabytes or more. This view is supported by Chinese miners who control 70% of Bitcoin's total computing power.
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