How blockchain technology works. Blockchain - what is it in clear language. What is cryptocurrency decentralization

Recently, many of us are increasingly faced with such a concept as blockchain. What is this system? Unfortunately, not everyone knows about this, although it has very promising chances for development and implementation in everyday life. Let's try to describe what blockchain is in simple words. To top it all off, there will be a few examples of the new technology being used, and the advantages and disadvantages of the global information structure will be discussed.

Blockchain: what is it?

The system itself appeared relatively recently. If you do not delve into the main technical aspects of functioning yet, blockchain technology is a clearly structured database with certain rules for building chains of transactions and access to information, which excludes data theft, fraud, violation of property rights, etc.

In addition, when working with it, only two parties are involved, without the involvement of intermediaries for conducting transactions of any type. If we talk about what a blockchain is, in simple words, the technology can be compared to a kind of transparent safe, say, made of impenetrable glass, into which each registered client (user) can put something. At the same time, everyone else can see what exactly is put there. But you can take something from the safe only if you have certain access rights, roughly speaking, a key known only to the person for whom it is intended. As it is already clear, you cannot hack or break the safe. But, in fact, this is a rather primitive comparison.

In a sense, the blockchain system can be represented as a kind of global book, in which the basic rules for storing and distributing information are described by mathematical means, excluding access to it from the outside even at the level of registered customers or administrators. It is easy to guess that this system does not have a single manager as such.

How does blockchain work?

The basic principle of the functioning of the new technology is the transparency of the operations performed with the impossibility of changing them by persons who do not have authorized access to it. The "Bitcoin" system is considered the ancestor, at one time created in the form of a self-regulating cryptocurrency that does not require servicing by financial institutions or banks. She used the blockchain platform to record all types of transactions. Any blockchain wallet works in a similar way, for example, the same Qiwi system.

You can understand the basic principles of the global database using the example of the structure of DNA. It has its own chain of blocks of transactions (transactions, payments, etc.). In this case, after the completion and confirmation of any transaction (according to the established mathematical rules), a new block is added to the chain. And each such block, like a DNA cell, contains information about the entire network as a whole. Thus, blockchain technology initially predetermines the impossibility of adding a fake block or removing an existing one, since this will be immediately visible throughout the system. Roughly speaking, you cannot add to the structure what should not be there. When a block is deleted, the system reacts in the same way to a change in the global structure. So it turns out that fraud, attempts at unauthorized interference, or the same piracy is almost one hundred percent excluded.

Main areas of application

At the stage of its appearance, the blockchain technology (from the English block chain) was used exclusively for cryptocurrency, and a little later was adopted by some banking structures.

However, today, in its development, the new system penetrates into our daily life quite deeply. Platforms for the development of business applications based on blockchain technology can even control the observance of copyrights, tracking the production processes of a particular product for its compliance with the declared standards, not to mention absolutely all financial transactions.

The main platforms for building business applications

Among the most advanced and frequently used platforms, on the basis of which software products for business can be created, the following can be noted:

• EmcSSH.
• EmcSSL.
• Emc InfoCard.
• EmcTTS.
• Emc DPO.
• Emc Atom.
• Emc DNS.

Let's consider each of them separately.

EmcSSH

From the point of view of the EmcSSH platform, which is an additional extension of SSH technology for network administration, the blockchain is a kind of specialized storage of public keys (passwords) and lists of users who have the right to authorized access.

For example, a network user has access to multiple machines. For this, a password-protected secret key file is used, stored in the blockchain, which excludes the manifestation of hacker attacks, called MIM ("man in the middle"). If the impossible happens - the file is stolen, then the user can instantly change it to a new one or block access.

This technique is most effective in cases where you need to manage a large number of servers, a network of ATMs, remote computer terminals, etc. What's most interesting, such global control can be carried out regardless of geographic location, and with the same simplicity as when working on a regular local network.

EmcSSL

This platform is an extension of the custom SSL protocol. For him, the blockchain is a place for storing the so-called digital fingerprints of certificates of individual users or organizations.

When entering, for example, a bank's website, and exchanging information between the user and the banking Internet system, the user is authorized precisely on the basis of such certificates, which makes it impossible for third parties to steal passwords, codes or keys. If a client loses a certificate, the procedure for its restoration is greatly simplified, although it has some inconveniences in terms of imposed restrictions (the restoration service is paid, and the process itself takes a lot of time).

Emc InfoCard

Basically it uses a system of electronic business cards that are inextricably linked with user SSL certificates. Unlike the latter, such business cards are convenient in that the information they contain can be changed.

When you enter a specific Internet resource that supports this technology (for example, a blockchain wallet), authorization occurs precisely on the basis of a virtual business card, and information from it is loaded automatically. The convenience of such a system is that when the data in a business card changes, it changes on all resources where it is registered, simultaneously and fully automatically. So the user does not have any need to re-fill registration fields on a huge number of sites manually.

EmcTTS

The TTS system is a tool for fixing placed documents of any type in time with the creation of a fingerprint of the moment of their publication.

This technology is indispensable in legal matters when it is required to prove the authenticity of a document, contract, patent or even copyright publication. By using the time stamp, you can easily check not only the date of issue or publication, but also the time accurate to the second. And in jurisprudence, this can sometimes play a key role.

For example, there are two companies that have entered into a contract for the provision of some services. The first, after the signing of the contract, made its publication using TTS technology. The second company did not know about this, and after a while began to arbitrarily amend the contract, citing an allegedly lost copy of its own, and even stating that some points were spelled out in its current edition. Nothing is easier than proving the first company with a time stamp of publication.

Emc DPO

The DPO system is another offshoot of the mainstream technology used to prove rights to any property in physical or intellectual terms.

Simply put, based on unique numbers or characteristics, the use of such technology can confirm, for example, the right to own a car, house or apartment, land plot, software development, etc. Cadastral numbers, registration certificates, serial numbers can be used equally software licenses, and in some cases, say, for real estate - the location, etc. With such a system, the re-registration of ownership is very simple. It is enough to perform the simplest data change operation in the blockchain. As already clear, access to such processes can only be obtained by persons who have the right to do so, and outside interference is excluded.

Emc atom

Atom is a system designed to conclude transactions between two parties without the participation of a third party or intermediaries.

To make it clear, in some cases, when transferring property rights or concluding contracts, two parties are forced to contact a notary, a law office, a bank and other organizations. In this situation, their participation is not required. Registration in the event of a transaction with property, when the seller received money, and the ownership was re-registered to the buyer, and is a confirmation of the legality of the operation with a preliminary verification of the seller's ownership of the property, and in the future, also with confirmation of the ownership of the new owner. True, this approach can be used only when both parties trust each other unconditionally.

Emc DNS

Finally, there is another platform, which is an alternative system for distributing domain names in networks, preventing attackers from attacking DNS.

It is believed that with the use of such technology, any distributed network tied to the Internet becomes practically invulnerable.

Fast transactions

This type of technology is designed to carry out micropayments with minimal cost and expense. Such calculations can have extremely small amounts (even for a fraction of a penny).

Since all transactions are virtual, the system allows you to remove any speed limitations in the so-called TPS metric, despite the fact that any calculation has its own cost, expressed either in monetary terms or in the resources consumed for its completion.

System advantages and disadvantages

In the end, it remains to say that the blockchain system has quite pronounced advantages. The most important thing in technology is flawless reliability and, it is claimed, absolute safety. Despite this, today there is an active debate about the advisability of the widespread introduction of such technology. Bankers, by the way, are in no hurry to use it because of the low speed of work, which initially depends on traffic, although they admit that speed has a lower priority compared to the reliability and security of operations.

But any consumer using blockchain technology can even independently check the quality of the purchased goods by tracking the entire production and supply chain to make sure that the purchase really meets the specified standards.

However, it is too early to talk about the global implementation of this technology, the appearance of which, according to many experts, is comparable only to the emergence of the global Internet. And there are not so many applications created on its basis, not to mention the organizations that use them, as many would like. However, most experts are inclined to think that blockchain has a great future. Whether it is true or not, time will tell. It remains to be hoped that this system will not suffer the fate of the bitcoin cryptocurrency, which it was recently decided to abandon.

In the news about the most popular cryptocurrency, Bitcoin, the word "blockchain" is often heard. Moreover, experts in the field of digital currencies pronounce this term in such a way that even a person far from the field of electronic payments will understand that we are talking about something very important. But if the majority of ordinary citizens already know what bitcoin is, then blockchain technology is still incomprehensible to the general public. The reason for this is simple - there are not so many materials written “for dummies” on the Internet, and scientific and technical texts are difficult to understand. We will try to explain in simple words what a blockchain is, what its essence and features are, as well as give a detailed and understandable description of the technology and its advantages. And of course, we will consider the question of how to create a wallet for storing cryptocurrency based on the blockchain.

What is blockchain - explanation in simple words

According to a number of experts, the invention of the blockchain is one of the most important discoveries of mankind since the creation of the Internet. Thanks to this technology, it became possible to conduct electronic payments in such a way as to fully protect both the payer and the recipient, exclude the likelihood of fraud and return of the sent payment, and at the same time, allow both parties to the transaction to remain anonymous.

It would seem that the technology that provides all these conditions should be daunting and understandable only for a narrow circle of specialists, but this is not the case. Blockchain, which literally translates from English as a chain of blocks, is a constantly updated and supplemented database. If we define what a blockchain is in simple words, then it would be most accurate to say that it is an archive of a payment system, into which data on all transactions and other operations performed by users are entered in a strictly defined sequence.

However, blockchain has a number of key differences from databases and archives that are used in banking and other electronic PS. These differences are as follows:

1. The database is not stored on a single server, but for all members of the system, in the form of interconnected copies. The blockchain is stored at once in all users who have electronic wallets, and all copies are linked through a peer-to-peer network (a network that works on the principle of torrent trackers). The system constantly refers to all copies and verifies them with each other, so none of its participants can independently change the data already entered - the blockchain will immediately detect and correct the forgery.
2. All transaction data does not exist separately from each other, but are linked in a continuous chain. Each new block of data in this database refers to the previous one, which eliminates the forgery of data in any block, and attempts to introduce new, forged information (hack the system and fake money).
3. Using hashing when creating new blocks in the database - one of the most reliable cryptographic methods for encrypting information. To create a new block and add a record to the blockchain, the miner must guess its hash, and this hash is also written to the system. Therefore, it is impossible to forge any block - if the data in the block does not match the hash specified by the system, the blockchain simply will not accept this record.
4. Openness and transparency of the base for owners of electronic wallets of the Bitcoin payment system. Each user can, if desired, view data on any transaction and track the movement of monetary units in the system. However, it is impossible to use this information for fraudulent purposes, because to complete a transaction you need access to the closed source code of monetary units (registered in the wallet and visible only to the owner), and not the public key (reflected in the blockchain database and visible to everyone).

Thus, in simple terms, it turns out that the blockchain is a kind of electronic ledger, presented at once in many interconnected copies and available in all participants in the system. All the "pages" in this book are tightly stitched together, and the records contain secret codes, so every copy owner can view any record on any page, but has no opportunity to make changes to the records themselves, nor to rip out and replace the page.

Blockchain history

It is officially believed that the blockchain technology was created in 2008 - in the year when the mysterious Satoshi Nakamoto published a protocol on the network with the principles of the first cryptocurrency system Bitcoin. According to him, he began work on the system in 2007, and in a year he created the source codes for the blockchain base. And 1 year after the publication of the protocol, in 2009, Satoshi Nakamoto made the code of the client program publicly available and created the first block in the system, receiving a reward of 50 coins.

However, researchers believe that Satoshi Nakamoto can be considered the creator of blockchain technology only in part, since similar technologies existed before. The creator of Bitcoin probably took the following inventions as the basis for his database:

• Ideas for an independent encrypted currency, published in 1998 by Wei Dai and Nick Szabo
• Hashcash anti-spam engine proof-of-work (developed in 1997 by Adam Buck)
• A technology for linking independent hash blocks into one chain, developed by Hal Finney (this programmer joined Satoshi Nakamoto, helped to refine the system's protocol and became the second participant in Bitcoin).

Application of blockchain technology in other areas

Although blockchain is closely associated with Bitcoin, in fact, this technology is already being used by other financial systems and government agencies. In particular, in 2016, a letter of credit transaction was carried out between Alfa-Bank and S7 Airlines through the blockchain, and Bank of America announced the development of its own blockchain platform for internal transactions. The advantages of the technology were also noted by government authorities - ideas have already been voiced in the EU Parliament that blockchain can be used to improve the electoral system.

The lack of bureaucracy, transparency, openness and high security of databases built on the principle of a continuous block chain make the blockchain a very convenient tool for use in various fields. And it is not surprising that investing in the development of blockchain platforms is now very common - according to experts, in the coming years this technology will be widely used in law, logistics and banking.

Blockchain for dummies: a description of the technology and its advantages

If we give a definition of blockchain and a description of the technology for “dummies” in simple words, then we can say that it is a database that is constantly increasing due to information about new transactions, consisting of a sequence of blocks. Through the peer-to-peer network, each transaction made by one of the participants in the system is transferred to copies of the blockchain of other participants and entered into them. Information about new blocks is added to the blockchain in the same way: when a miner unravels a block based on a hash function, it is first entered into its base, and then, within hundredths of a second, is transmitted over the network and written to instances of other users.

To protect the system from hacking and attempts to introduce false information into it, a hash sum is added to each block at the time of its creation (in simple words, a unique description of the block obtained by the encryption method). The system constantly checks the correspondence of blocks to their hash-sums, therefore, it is impossible to forge a data block or change arrays with information in places (cancel a transaction).

In addition to hashing and constantly checking all copies of the blockchain for compliance with each other, the system also uses such methods of transaction protection as PoW (proof of work) and PoS (proof of ownership). In simple words, the essence of these protective methods is that only the owners of digital money have access to the source code of their coins, and third parties can see only their hash sums.

Blockchain database security and reliability

The blockchain-based Bitcoin system is one of the most secure currencies in the world, as digital money cannot be counterfeited or stolen. And the explanation for such a high security of these financial units lies in the very essence of the technology on which BTC is based, namely:

• The database is stored simultaneously by all system participants, and the copies are constantly checked against each other; to enter false information into it, you need to hack the computers of all users
• The hash function of each block is the sum of the data recorded in it calculated according to a certain algorithm and has a time stamp; even if someone manages to guess the hash of some block, he will not be able to forge bitcoin, since the timestamp will not match and the “fake” will simply not be included in the base chain
• All data blocks are inextricably linked and cannot be changed, therefore it is impossible to cancel the transaction or change the recipient's address.

How to create a blockchain wallet for storing cryptocurrency

The digital money of the participants in the Bitcoin system is stored in electronic wallets, which are files with the source codes of the coins. In simple words, a blockchain wallet is just a text file with codes. Moreover, it can be stored both on the server of the online portal on which the wallet was opened, and on your own computer or flash drive.

The easiest way to create a blockchain wallet is to register on the official website Bitcoin Blockchain.info. To open an account in bitcoins, you need to perform the following sequence of actions:

1. On the main page, select the "WALLET" section and go to it.
2. In the tab that opens, click on the "Get a free wallet" icon located in the upper right corner.
3. Fill out a simple registration form - enter your e-mail address and password in the proposed fields and click "Continue".
4. After registration, the user will be automatically redirected to the home page of their newly created wallet.

Using a Bitcoin wallet is as easy as creating one. To receive money from another member of the system, you need to send him the public address of your wallet, which can be seen and copied by clicking on the "Receive" button. And to send bitcoins, you only need to find out the address of the payer's wallet. It is important that you do not need to leave personal data or contacts for making transactions on the blockchain.

Simplicity and high security make blockchain technology an almost ideal tool for making payments on the network. In simple words, the blockchain is both an archive and a field in which all payments are made. The description of blockchain technology for "dummies" is as simple as it is, so even people far from programming and cryptography will have no difficulty in figuring out how it works and how to create a wallet in this system. And in order to use this reliable, anonymous and secure system, it is not at all necessary to delve into the intricacies of hashing methods and the design features of peer-to-peer networks.

Hello!
I will briefly describe the basic concepts such as decentralization and blockchain, which are inextricably linked with cryptocurrency. Anyone who wants to understand cryptocurrency and understand its significance should have an understanding of these concepts. I will not be clever - everything is simple and short.

What is cryptocurrency decentralization

The main cryptocurrency today is bitcoin, the so-called "our daddy", so I will use his example to describe some of the features of the cryptocurrency. Bitcoin, its network has complete independence from territorial affiliation to any state, besides this, there is no economic connection either. This is one of the main differences between cryptocurrency and ordinary banknotes, which are tied to different states. Bitcoins are multiplied and managed in an independent network exclusively by users of this crypto system.

Just as you give cash from your pocket to another person without any intermediaries, so bitcoins are transferred from one person to another, for this you do not need banks and other intermediaries. This is what is called in simple words DECENTRALIZATION.

An operation (transaction) to transfer money, in this case, bitcoin, is recorded on the network (blockchain) once and for all, it will be impossible to change or cancel it, and therefore it does not need intermediaries who receive money from some clients and transfer to others, guaranteeing the completion transactions.

In addition, unlike ordinary fiat money, which is yours, but still belongs to the state, the bitcoins that are on your wallet are completely controlled only by you and no one can access them without your private keys. No one can physically stop you from making money transfers.

The bitcoin network is designed in such a way that it is the network users who do not know each other and do not trust each other who perform the verification and calculation operations, or rather, their equipment does it. None of private and official persons can block transactions conducted by users.

Another advantage of the network is that it constantly plows at all 100% of its capacity, no matter what time of day it is, what day of the week it is, whether there are holidays or not, always giving participants the opportunity to use it whenever and wherever it is convenient.

What is blockchain

First you need to understand what a bitcoin network is. Everything is simple - this is a database that records and stores information about all transactions ever made between all users of this system and for all time. Other cryptocurrencies also have such a separate database.

All information in such a network is recorded in the form of blocks, copies of which are located at the same time for all participants of the system itself in encrypted form - this garbage is a distinctive feature of the network.

The blockchain is a distributed, secure database that is completely protected from manipulation. Security in such a network is provided by mathematics and cryptography, and you can only enter entries into this database if it meets certain rules. Changing the record, making a retroactive record, or other manipulation will require so much computation that today it will not be physically possible to do it, or the computation will be so expensive that "why not," and the cost of this business simply will not justify itself.

How blockchain works

An important and distinctive feature of transactions is the irreversibility of operations. In case of claims and objections regarding the transfers made, there is no possibility to cancel the transaction. In this case, only voluntary refunds will help, for which a separate transaction will be required. This principle ensures the operation of blockchain technology - a public register, which is a continuous chain of blocks with information. The blockchain operation is computationally intensive.

Information block

Each new block of information, no matter what size the network itself, is built according to the same principle and rules - it includes information about all the changes in the network that occurred before it appeared.

By its structure, the block includes the following information:

Title

Unique number

Own size record

Transaction counter

Array of multiple transactions

In general, according to blockchain rules, each new block also includes an indication of the previous one. From the time the block is added to the chain, it will no longer be possible to change it.
The size of the block of information, for example the main network of the cue ball, is 1 MB, in other networks the block size may be different. So, the block size of the Bitcoin Cash network (bitcoin cash) is 8 MB and can be dynamically changed.

Blockchain types

Public is, for example, the bitcoin blockchain, which is open, i.e. any person in any country, if he wants, can see the history of transactions in the entire network, as well as participate in reaching consensus, that is, check blocks of information.

Private - in this case, only one company is entitled to make entries to the blockchain. These systems are now being actively implemented to maintain internal accounting and turnover in various organizations.
To carry out verification by third-party organizations, for example, in a private blockchain, they make it possible for public access to read the blockchain, but only the company itself has the right to make records on the network.

Consortium (for several companies) - here, when several companies need a closed network, then consortium blockchains are created. They are controlled by a preselected set of nodes, have their own rules and parameters for checking and writing blocks of information into the main chain, as well as parameters for accessing the network.

Network protection

Cryptography is the basis of protection in the blockchain network, each new block of the chain is built on the cipher of the previous one.

The word "blockchain" is a neologism even among advanced IT users: it is no more than 8-10 years old. On the hearing of the people, this word lives even less: 3-4 years. The surge in popularity of this ingenious technology with great prospects falls on the peak of the growth of electronic currencies based on the blockchain - in particular, Bitcoin. This is logical: an expensive and suddenly increased in price commodity (smartphones, gold, oil) always attracts increased attention - even those who are far from the world of information technology.

Understanding this technology is just as useful as knowing computer skills or being able to drive a car. This knowledge is not for everyone; but those who own them are in a privileged position. No mathematical or computer-aided education is required - the explanations are really simple.

So, blockchain is what it is in dry mathematical terms:

This is a database built according to strict algorithmic rules, which is designed for absolute information transparency of each element. At the same time, it is almost impossible to compromise (steal) data - due to multiple duplication of the database and the absence of a single center for its storage.

Why “block”? Because all data is grouped into blocks and arranged in a certain structure, like atoms in a molecule. Why “chain” (“chain” in English)? The database is formed in the form of a chain, where the value of the next element depends on the previous one. The result is a “chain of transaction blocks”.

Have you yawned a couple of paragraphs above? Patience! Below is a much tastier and simpler definition of this technology. And let some moments cause a kind smile among specialists - the essence is correct, plus - it is explained, as they say, “on the fingers”. This description may well be offered to children. By the way, they catch it on the fly.

Blockchain at a glance, or a Tale for novice cryptotechnologists

1. As it was before ...

All pages were filled in by Sasha without a gap, scrupulously. More or less like this:

• January 7: received a salary of 20 thousand rubles
• January 9: spent 900 rubles in a store
• January 12: lent 2 thousand to a neighbor
• January 31: Spent 10 thousand to buy groceries.

When questions arose about where the emergency reserve had gone, or who would have to pick up the promised debt, Sasha took out his Ledger-diary, looked through the entries, and collected the debts. Everything went on as usual, until a greedy but clever intruder with a set of master keys for all locks and doors was nearby. Having borrowed from Sasha a couple of thousand for a month, this man refused to pay the debt. Like, “there was no such thing - I didn’t take it”! And before this answer, the cunning neighbor, using the “left” keys to Sasha's door, secretly managed to open his apartment, found the Ledger, found a record about himself (“loaned to a neighbor”) - and replaced it with “lost 2000”.

Sasha discovered an already changed entry. He was surprised, shrugged his shoulders, and agreed: he did not lend to his neighbor, but he simply lost the money. The sums for the month came together (after all, 2 thousand were lost!), And the hacker, a cunning thief with master keys, was able to make money on imperfect financial accounting.

Above it was about the classic monetary, banking or "document circulation" systems of the pre-blockchain era. Grandfather's techniques in the era of total computerization are detailed, easy - but completely unreliable. And there are more and more people who want to warm their hands on gaps in the security system. To rob a bank in the 21st century, you don't need physical access to safes or lockpicks.

Fabulous Sasha is a bank; his ledger diary is a traditional platform for accounting for financial transactions; the thief neighbor is a hacker, and his master keys are computers, programs and viruses. We promised to tell you about blockchain in simple words! Let's go further.

1. How it becomes after ...

... And thousands of kilometers from Sasha, in the eastern country where the sun rises, there lived a wise wizard Satoshi, who was also a programmer. Once he was horrified by the imperfection of banking systems and the unfairness of monetary distribution: you can print currency as much as you like. Who can forbid the Evil King from doing this under the stars and stripes, or the King with his three-color banner?

And so - the programmer Satoshi invented his own diary-ledger for such accounting of monetary transactions, which:

1. Could be used by everyone, not just the Dark Lords of the Evil Kingdoms.
2. Would only allow the owners to modify the entries in the diary.
3. It would be perfectly protected from counterfeiting.

What's the magic? The fact that Satoshi-san's magical diary spread very quickly throughout the planet. He got to John from the Dark Kingdom, and to our Sasha from Russia.

The blockchain was born. The technology of a distributed database with blocks of transactions immediately gave rise to the newest electronic currency, Bitcoin, which had no analogue before. This money is not issued (issued) by any state - and not by any bank. Their number is strictly limited - and getting new ones is getting harder and harder. Although at the very beginning, the creator and ideologist of the new platform Satoshi Nakamoto and his comrades were able to “mine” (mining is the process of extraction) a huge number of new monetary and digital units - and leave the scene deep into the shadows.

3. How does it all work?

... Sasha, upset by the constant break-ins of his old grandfather's Ledger and the disappearance of money, discovered that there was a new, magical Ledger. It is protected from theft and burglary. You can use it for free and anonymously.

Strings of numbers were now added to each entry in Sasha's diary under the magical name “hash”. The hash value strictly depended on the number of characters and letters in a single record.

• For example, for “Received a salary of 1000 rubles” such a chain was equal to b34c5.
• For "Received a salary of 2000 rubles" - quite different: 89345.
• When only one digit was changed in the record: “I received a salary of 2001 rubles”, the hash chain changed beyond recognition: a9135f.

Where exactly the hashes appeared in the records, Sasha did not fully understand. However, he did not understand exactly how his TV worked, or how the car drove - but he skillfully used both. And now a new financial diary has appeared - another item among the seemingly complex, but such simple and familiar microwaves, telephones and coffee makers.

The hashes in the records appeared by themselves, at the behest of the computer and by calculation - and not a single cunning thief with master keys could now just take and change the record if he did not change the hash. Moreover, not one - but all, all hashes in the diary, next to each entry. Such is the protective magic.

The magic Ledger looked like this:

• February 12: received an advance payment of 100 thousand, 45h3348
• March 9: put 22 thousand in Sberbank, 2345iu61
• April 15: lent 50 thousand to a neighbor, 9105f9a
• October 20: a neighbor returned 50 thousand, 450s8g8

The beginning is normal, and the end of each line is now with a hash. And each hash block depends on the previous one. If you fake one, you will have to fake all the previous ones, moreover, counting each entry for a long time and persistently: how many and what letters are there. It is difficult even with a calculator. One attacker will definitely not get through. And what if there are thousands of part-time hacking neighbors, and each is armed with a powerful computer for calculating protective hash magic? ..

Now more serious. The hash sum is automatically generated by the computer for all entries - both the word hash and its very essence should be familiar to all active torrent users. The invention of blockchains created a strict mathematical relationship between hash # 15619 and the previous hash # 15618, and so on. From time to time, the database algorithm checks and recalculates previous hashes to see if they match. This is how burglary protection is carried out.

In principle, it is not necessary for an ordinary user of crypto settlement systems named Sasha to know all this - after all, the radio listener does not understand all the subtleties of the conversion of waves and frequencies in his receiver? Doesn't understand, but successfully uses this simple and straightforward technique. This is the case with crypto money and other blockchain-based products: you don't have to know everything completely to use them.

Is it possible to spoof hashes \u003d how safe is everything? Our hero will have to deal with this question in the fourth chapter "Tales for dummies in the field of blockchain".

1. Why the system cannot be tampered with or hacked

... A hundred cunning debtors got together, armed themselves with powerful computers to calculate magic protective hashes - and overnight changed the entire magic Ledger with thousands of Sasha's records.

But an exact copy of Sasha's diary was with his friend Petit from St. Petersburg, and his friend Gali from Moscow, and even the Colombian Juan-Pablo, along with thousands of other adepts of the magician Satoshi. These ledgers were synchronized with each other in the morning, the fake was discovered - and the money did not disappear anywhere.

... And no hordes of hackers will be enough to hack and simultaneously forge millions of identical ledger diaries of Sasha, Gali, John and other users! Only this is no longer a fairy tale. Welcome to the new world of blockchain: an invention comparable to the internet and cellular networks.

Is blockchain Bitcoin?

Blockchain and Bitcoin are never synonymous, although they are related concepts. Cryptocurrencies are a revolution in the world of payment systems. Ethereum, LiteCoin, etc. are based on blockchain technology. They are radically different from existing e-wallets like Qiwi, WebMoney, or Visa / MasterCard. An approximate analogy - the Word editor (Bitcoin!) Is based and works on the basis of Windows OS (blockchain technology!). In addition to cryptocurrencies, on the basis of the blockchain, not only money can be created, stored and transferred, but also:

• banking and accounting registers;
• insurance and other financial documents;
• “Smart contracts”;
• all kinds of registers and accounting cadastres: land, tax, scientific.

Just like in the Windows environment, in addition to text editors, there are dozens of other kinds of applications, from games to browsers.

Why are blockchains so good? Security and transparency for owners, creators and users. Essential unbreakability. Equally fundamental, but at the same time, imaginary simplicity - for a scientist programmer, and for a businessman, and for a housewife. Like television or mobile communications.

Blockchain is not Bitcoin. However, you need to understand and remember 2 principles:

1. Bitcoin is one of the practical varieties of blockchain technology. The very first - and the most famous.
2. There can be many projects using blockchain - in insurance or commercial activities, in accounting or in science. In 2017, such projects are being implemented in many countries.

If one can still argue about the “financial pyramid” essence of cryptocurrencies, then other aspects of blockchains are not at all connected with money - and therefore they are definitely needed and useful for humanity. And even for the governments of different countries, which are expected to have a negative attitude towards cryptocurrency. After all, it is not central banks that issue crypto money, but ordinary computer users.

Black glory Bitcoin

Electronic money Bitcoin has given widespread, but undeservedly negative publicity to all types of blockchains (in the previous section, we found out that these are not synonyms!). The average person knows that:

1. Cryptocurrencies are not backed by anything.
2. Their rate is able to “float” dozens of times during the year - from $ 300-400 for 1 BTC in the spring of 2015 to 2500-2800 in the summer of 2016. Perhaps the future will bring an equally rapid decline.
3. Money that cannot be controlled can be used for openly black purposes - for financing terrorism, calculating drug trafficking and other popular horror films of the modern world.

Without arguing with the supporters of the BTC bubble theory, we note:

1. State currencies are also not backed by either gold or other values.
2. Gold, oil, steel and other assets are subject to significant fluctuations in value.
3. Other software products: social networks and instant messengers (or let's take more globally - the Internet and mobile communications!) Can also be used both for respectful communication with your beloved grandmother or the worst business partner, and for outright criminal schemes of very bad organizations.

Investing in cryptocurrencies in any case seems to be a high-risk enterprise, where there are approximately equal chances of both super-profit and super-loss.

The bright prospects of blockchains and their implementation in everyday practice

Imagine a consortium of banks in one large country. The consortium maintains an expensive but vital accounting of the credit history of all individuals and legal entities. It is possible, although illegal, to falsify the credit history of individual customers in order to obtain and not return a financial loan. Even with the existence of a single accounting platform, such a person is able to simultaneously take significant loans from several banks - and safely hide in an unknown direction. By the way, these are the everyday problems of financial institutions not only in Russian conditions.

How will banks react to the proposal to create a new accounting system: much less expensive, completely transparent and secure, which cannot be hacked? These are technologies on the blockchain platform. And financiers, by definition, know how to calculate profits, so they treat the proposal very positively. In September 2016, this system was implemented by credit institutions of Singapore, in November - by the Central Bank of Sweden, in February 2017 - by the State Bank of India.

Another example. A large and respected payment system spends millions on financial processing, related settlements with the bank, support and protection of numerous servers - and still regularly suffers losses due to hacks, technical failures, delays in online payments. What will this company say to the proposal to reduce processing costs hundreds of times, while increasing both the fault tolerance of the system and its security? Qiwi said “Yes” back in April 2016.

Hello, dear readers of the online magazine "RichPro.ru"! This article will focus on blockchain technology: what it is and how it works, what methods of making money on the blockchain exist.

After examining this publication from start to finish, you will learn:

• What is Blockchain and what are the benefits of the new technology;
• Where is blockchain used and how this technology works;
• What platforms and projects exist based on Blockchain.

Also the article contains instruction for beginners on how to get blockchain training.

Recently, there has been widespread talk of Blockchain technology. However, not even all people in the financial sector understand what it is. What can we say about ordinary people in the street. The only thing many people know about blockchain - the presence of a relationship with bitcoins.

We could not allow such a gap in your knowledge. Therefore, we tried to outline most of the nuances in the presented publication. Don't waste time, start reading right now!

About what blockchain technology is for and what it is in simple words, how the blockchain system works and what advantages it has - read this article.

1. What is blockchain in simple words - an overview of the concept + advantages of Blockchain technology

When studying any topic, you should first understand the terminology. Word Blockchain comes from an English phrase, the translation of which sounds like Block chain... It is this phrase that conveys the main meaning of the concept quite well.

Blockchain (from the English blockchain) — this is technology, which involves collecting information into a sequential chain of blocks secured with cryptographic ciphers... In this case, the data chains are not stored on a separate server, but are present simultaneously on all devices connected to the network.

Blockchain is a self-contained system that does not require third parties to function. Moreover, the system under consideration is extremely open. In the process of creating the blockchain, the main goal of the developers was to move away from intermediaries.

Experts say that the widespread use of blockchain technology will lead to significant changes in the information world. This is explained quite simply: decentralized storage of data allows you to protect them from unauthorized changes, eg hacking, tampering or any kind of control.

Another important plus (+) technology is that intermediaries (financial institutions, payment systems) are no longer needed for any data transfer operations. All information is transmitted using the protocol peer-2-peer, that is, directly from one user to another.

All participants in the system have the opportunity to get information about the history of operations, as well as about other participants. Moreover, all system data is stored simultaneously in all devices on the network.

Only the owner has access to the funds on the blockchain wallet. Money is not deposited with intermediaries, which are usually banks. Thanks to this, transactions are not under anyone's control.

In more detail about what it is and how to open it, we wrote in a separate publication.

The blockchain is able to secure any operations that involve the risk of one of the parties to the transaction refusing to fulfill its obligations. That is why the list of areas in which the technology under consideration is used is constantly growing.

Blockchain technology can be applied:

1. when conducting financial transactions with money;
2. when concluding contracts and agreements;
3. in the course of various commercial transactions;
4. when purchasing goods and services;
5. when exchanging confidential information;
6. for registration of insurance policies;
7. to protect property rights, as well as transfer them to a new owner;
8. personal data management;
9. to ensure the security of intellectual property;
10. assistance in creating archives of documents.

Complex mathematical algorithms are used to connect individual blocks of information to each other. Each subsequent data link is attached strictly to the previous one. It is assigned unique signatureand also added timestamp.

Adding a block must be confirmed by all network participants. This procedure leads to the fact that the registry on all devices is automatically updated... It turns out that the appearance of each link leads to the emergence of data about it in all information bases.

Important! Hacking the network will only work if you gain access to at least half of the connected devices... Naturally, it is almost impossible to do this technically.

The attitude to the newest blockchain technology today is absolutely ambiguous. State bodies fear that the lack of control over financial transactions will lead to the flourishing of illegal trade, eg weapons, drugs and people.

Financial companies on the one hand, they are afraid, because the absence of the need to use the services of intermediaries can leave them without work, at the same time, they are interested in the blockchain from the point of view of application in their activities.

Over 40 large banking organizations have created consortium who was named R3 ... Its purpose is to study blockchain at scale. The consortium members are sure that the new technology cannot be perceived as an unconditional evil for banking organizations.

On the contrary, the use of blockchain allows reduce ↓ expenses. Banks intend to transfer interbank payments to a new technology and abandon the one used today SWIFT.

In Russia Blockchain technology and cryptocurrencies are treated differently. The authorities are constantly changing their minds - sometimes they call for the study of new technologies, sometimes they intend to prohibit them. We talked about that in one of our issues.

The Ministry of Finance proposes to prosecute those who use cryptocurrencies. At the same time, the head of Sberbank and the head of the Central Bank publicly express their support for modern technologies.

Actually, it has long been proven that there is no point in opposing progress and modern technologies ... Blockchain has already appeared and is working. It's important to learn to live with it and turn technology around for personal and human benefit.

The main advantages of blockchain technology: no central server; fast and accurate transactions; transparency of transactions; a complete copy of the database; data encryption

Blockchain technology benefits

Blockchain technology has a lot merits , which every day attract more and more people to it.

Already today there is an opinion that the new data storage technology will lead to the emergence of a new Internet - internet of values... This is associated with the significant advantages of blockchain, which will be described below.

Advantage 1. No central server

Blockchain is a brand new way of storing important information. Data in the Blockchain system is stored decentralized, there is no single repository. This makes it impossible to control the information.

To change even one block of information will require unrealistically huge capacities. Information is stored on all networked devices simultaneously. Therefore, they remain practically invulnerable.

Before the emergence of new technology absolutely all information was stored on servers ... Including data on monetary transactions, purchase and sale transactions, any other actions. Meanwhile, any server can be hacked. As a result, fraudsters can not only gain access to confidential information, but also change it.

Advantage 2. High speed and accuracy of operations

Lack of centralization, as well as built-in protection against unauthorized access help to carry out transactions with high speed and accuracy, abandoning the services of intermediaries ( banking organizations, payment systems, notaries, exchangers). The authenticity of the operations carried out is checked and confirmed by the network participants themselves.

It is on similar principles that smart or smart contracts ... They are executed only in the event that certain conditions are met. It is impossible to violate such agreement or change its terms retroactively.

In contrast, traditional treaties establish the obligations of the parties to the transaction, the terms of performance, as well as the consequences of their non-compliance. At the same time, a traditional contract is always fraught with the risk that someone will violate the terms.

Advantage 3. Transparency of operations

Blockchain network is in a state continuous monitoring ... This means that she periodically checks herself.

For this purpose, a digital system audit is used. At the same time, absolutely all information contained within the system remains transparent, data on all transactions are available to all participants.

Advantage 4. A complete copy of the infobase is kept by each member of the system

Each user of the system has a copy of the information base on his computer, which is regularly updated. Therefore, network participants do not have to coordinate data with each other. As soon as a new operation is added to the blockchain, this is confirmed by each user.

In this case, it is impossible to change not only a separate block, but also their sequence. Access to a specific information link is carried out using a key, which is available only to the one to whom it belongs.

Advantage 5. Information encryption

The information from which the link is formed is automatically encrypted. Full protection of stored information is provided by cryptography .

Thanks to hashing in the Blockchain, the immutability of the entire chain of operations is guaranteed. At the same time, the presence digital signatures, and personal keys 2 -x types protect data within the link from unauthorized access.

The main ways of using blockchain technologies (storage of digital certificates, organization of the DNS system, transactions with various goods, identification and confirmation of access rights, network management, operations with property rights, copyright confirmation, information management, organization of electronic voting)

2. Where is blockchain used - 9 possible applications of the technology

Blockchain is penetrating deeper and deeper into digital as well as real areas of activity. In theory, technology can be used in any area where there is a risk of being deceived or receiving incorrect data due to errors in the transmission of information. It is also possible to use technology in the absence of trust between partners.

Blocks allow you to secure operations by creating smart deals ... Broadcast password is carried out only under pre-agreed conditions. If they do not come, each of the parties to the transaction remains with its own.

Below are the options in which the use of blockchain is most effective today.

Option 1. To store digital certificates

Blockchain technology provides reliable data protection against illegal studying, spreading, and changes... Due to the fact that certificates are stored on the network, it is impossible to get to them unauthorized access.

It will also not be possible to illegally intercept access keys belonging to system participants.

Option 2. Organization of the DNS system

Blockchain helps make the distribution of names within networks completely secure. Thanks to this, any DDoS attacks (hacker) cease to threaten absolutely all network participants.

Option 3. Deals with various goods

Risk always accompanies operations with valuable metals, raw materials, and large quantities of various goods... If we use blockchain technology, as well as cryptocurrencies in such transactions, the danger can be reduced to a minimum.

Option 4. Identification and confirmation of access rights

Some serious corporations are already using Blockchain technology to identify employees as well as customers.

In addition, the system is used to provide access to inside information to those who are entitled to it. This method of verifying rights turned out to be more reliable and cheaper .

Option 5. Network management

When administering various Blockchain networks repository the list of users, as well as access passwords, which turns out to be invulnerable.

The use of technology in this case helps to protect servers and networks from hacker attacks. It also solves one more important task. - frees you from the need for administration.

Option 6. Conducting transactions with property rights

You can confirm and transfer ownership almost instantly using Blockchain technology. It is enough for the owner to enter data on changes in rights to his link so that they immediately become available in all blocks of the system.

Option 7. Confirmation of the author's rights

Subsequently, if there is a desire to transfer intellectual rights to third parties, you can smart deal... This will completely protect yourself.

Option 8. Information management

Not only financial transactions, but any information requires its owner to comply with all confidentiality rules. When using Blockchain technology, data is decentralized.

It is worth considering that when storing information simultaneously on a huge number of computers illegal change, forgery or deletion becomes almost impossible.

This option for protecting and storing data turns out to be essential cheaperthan traditional ones. You will not have to spend money not only on expensive equipment, but also on data protection from unauthorized access.

Option 9. Organization of electronic voting

Since it is impossible to change the information in the links, it is not possible to manipulate the results after the end of the voting.

To simplify the comparison of blockchain use cases, basic information about them is presented in the table.

Table of use cases for blockchain technology, their practical application:

№	Application option	What gives	Current state
1	Storing digital certificates	Allows you to protect certificates from unauthorized actions	Actively used
2	DNS organization	Domain name protection	Several examples developed and are in operation
3	Transactions with various goods	Protection of transactions using smart contracts	Some countries are actively using smart contracts
4	Identification as well as confirmation of access rights	Allows to provide secure access to information, as well as its confidentiality	Used by some large foreign companies
5	Network management	Security	Used by multiple systems
6	Conducting operations with property rights	Possibility of confirmation as well as transfer of ownership	Several platforms developed and operated
7	Authorship confirmation	Storage of intellectual property, the possibility of secure transfer of rights to it	Few platforms operate
8	Information management	Secure storage of information is provided	Used by foreign organizations
9	Organization of electronic voting	Impossible to fake voting results	Applied in practice by some network projects

3. How blockchain technology works - 5 stages of the system

It is not always easy to understand how something that cannot be seen works. But we will try to help figure it out.

How blockchain technology works: 1) creating a transaction and transferring it to the network; 2) transfer of the operation to the P2P network; 3) Validation; 4) Confirmation of the transaction; 5) Adding a new block to the chain

Below is the algorithm of blockchain technology using the example of operations with cryptocurrencies ... In fact, this digital money is only a block of information, so the principle of action can be applied to any transactions based on blockchain technologies.

Stage 1. Transmitting a decision on an operation (transaction) to the network

6. Platforms on Blockchain - TOP-7 services for creating business products

When creating business applications based on blockchain principles, it is impossible to do without specialized platforms. Below is an overview of the most reliable and popular ones.

Platform 1. Emc SSH

The platform in question is one of the options for SSH technology. Its main task is administration of internet networks .

In this platform, blocks act as an ideal storage that allows you to secure access keys, and a list of users.

In other words Emc SSH provides secure access to information, ATM and digital terminal networks, and servers. The presented platform allows you to provide global control of the network, regardless of how far away from each other its individual components.

Platform 2. Emc tts

Emc tts - a platform that offers technology for fixing various documents ... It is especially useful in resolving legal issues, as well as in cases concerning copyright.

The platform allows accurate to the second fix the time when the document was published. In resolving legal disputes, this precision can be very helpful.

Platform 3. Emc SSL

This platform is an extension of the custom SSL protocol.

Blockchain developed on this platform is way of storing digital prints that are owned by individual users and companies.

Similar technologies, eghelp to protect against hacking and leakage of information about bank clients.

Platform 4. Emc InfoCard

Emc InfoCard platform is based on electronic business card system ... The use of blockchain in this area allows achieving automatic changes in data at the places of registration of the card, if the information on the electronic business card itself has been changed.

Ultimately, an electronic business card becomes an analogue of a general registration at all digital platforms that are interconnected.

Platform 5. Emc DNS

The purpose of creating the Emc DNS platform was secure distribution of domain names within networks as well as ensuring their protection from hackers. Blockchain technologies help make domain names practically invulnerable for intruders.

Platform 6. Emc atom

The Emc Atom platform allows you to produce secure transactions between two parties, giving up from the participation of intermediaries.

In this case, financial organizations, notaries and other third parties are no longer needed. As a result, costs are significantly reduced ↓.

Platform 7. Emc DPO

The scope of the Emc DPO platform is proof of ownership of various property ... In this case, the property can be as physical(vehicles, real estate, land) and intellectualm.

This technology significantly simplifies the transfer of property rights. An owner who has legal access to the information must add a new entry to the network. After that, there is an instant change in information about property rights throughout the system.

Using the platforms described above allows you to create effective applications based on blockchain technologies.

Blockchain for dummies - step by step instructions on how to get training

7. How to complete blockchain training - step by step guide for dummies

All previous information allows you to do very important conclusion: for Blockchain - the future ... This is why training in this technology is a must.

Below is the a step-by-step guide for beginners , which will help you understand the sequence of training on the example of conventional Internet courses.

Step # 1. Choosing a training center

First of all, you should choose professional training center. At the same time, do not believe tempting advertisements. With the growing demand for learning, blockchains are stepping up scammers ... Anything can be hidden behind bright pictures and loud slogans.

When choosing training courses, special attention should be paid to the following characteristics:

• the legal status of the company;
• does the training center have a license and certificates;
• level of knowledge and qualifications of teachers.

You should also carefully study