One of the important techniques for constructing a cipher such as bit coin is block chaining. The block chain is often regarded as a technology that is comparable to the revolution. However, there are still many beginners who do not know what to say about the block chain.
A block is a new transaction record. Transactions can be used for other purposes as well as for selling something. For example, file storage, contracts, medical records or recorded conversations are endless. Basically, a block is a digital information record.
When you add digital information, a new block is created. This block participates as part of a previous block and is also associated with a previous block. These linked blocks are called block chains. The connection between these block chains is a tool that converts everything called a hash function to a unique value.
The digital information in the block constituting the block chain is converted into a hash function and the generated eigenvalues are used to realize the inter-block connection. So if you try to manipulate past transaction data intentionally and change the result of the hash function, this operation is immediately discovered. In other words, the hash function makes it possible to provide safer transactions.
The block chain itself encrypts with the public and private keys. It is easy to think that the public key shows the location of the block chain and that the private key is the way to access the block chain information. The public key also shows the address. Displaying the location of your block chain, not the personal information associated with your address. The public and private keys are not stored online, but stored on their own computers, so they are not accessible to anyone.
The block chain is stored on several computers on the Internet, not just on your own. When someone makes a transaction, each computer verifies whether it is a seamless transaction. In other words, because many people are always monitoring transactions, they can not make illegal transactions. Transaction records are completely transparent for anyone to read.
The block chain is like a boss who records all the transactions like this. If the exchange is in the area, then all block chain structures can be integrated. If it is a cipher, transferring the value interaction data can record both when and who interacted with the data when exchanging data. The advantage of a block chain is that it does not require a centralized organization or structure to manage the interaction. The exchange is shared through a network such as the Internet. Everyone can share and share resources to maintain and manage a large transaction record. They all share and have a record of their interactions, so manipulation is virtually impossible. To manipulate block-chain transaction records, it is virtually impossible to block the network and manipulate all the records shared.
Using this block chain, which can not be modulated, it is possible to secure transaction reliability without incurring a large cost. For example, to remit money to a remote person, the financial institution brokers the money to ensure the exchange security, such as confirming that the person is a proper person and using the exact amount specified. Financial institutions have a commission instead of securing transaction security. Financial transactions using block chains, such as bit coins, are different from other remittances such as credit cards or paypal. Credit card or paypal Anything in money goes through a financial institution like a bank. However, if you are a cryptographer that guarantees a transaction that can not be tampered with through a block chain, you do not need such an intermediary. It means that you can exchange values among people who do not pay commissions. The same goes for stock trading. Now brokers do brokerage, but if you use a block chain, you do not need a brokerage firm.
Although the block chain is growing rapidly in the financial sector, the application range of the block chain is not limited to the financial sector. Where exchange is possible, a block chain can be utilized. Until now, barriers to interaction such as money, time, and physical location have disappeared and new values and services can be created.
For example, recent reports that US Coca-Cola and the US Department of State will start a project to build a structure that uses block chains to secure workers in order to solve forced labor problems. According to the International Labor Organization, around 25 million people worldwide are being forced to work. Of these, 47% are concentrated in Asia Pacific. They produce sugarcane, a sugar ingredient in food and beverages, and the food and beverage industry has been under pressure to solve forced labor in sugarcane countries.
Coca-Cola has been working on a block-chain project over the past year. Through this, we will increase the transparency and efficiency of the labor policy certification process among our supply chains. Although the block chain itself can not force a company or an organization to comply with labor contracts, it is expected that the creation of a block chain of evidence will facilitate contract compliance. According to the US Department of State, this is the first time to use a block chain for workers’ rights-related activities.
Nonetheless, it can take a considerable amount of time for a variety of services to take advantage of the block chain. From a business point of view, a payment method such as a bit coin that is already based on a payment infrastructure is the first step. Next, there will be steps to build a reliable private block-chain network and reduce transaction costs in a localized network. Some of the areas where you can expect to benefit from a block-chain benefit include specialists such as authentication systems and anti-money laundering. You can think of a money-laundering system that can generate a public identity verification system using block chains and track money flows. Applying a block chain to electoral votes systems could also ensure elections that can not be tampered with on the wrong result. Another example is purchasing coffee beans that certify fair trade. Now I can not really tell if the benefits are being returned to the people in the developing world. Block chains can also be helpful in this area. There is a good chance that giant dinosaurs like Google and Facebook will also be born in a block-chain ecosystem.