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Blockchain as a new era of economics

11/02/2018
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  • Blockchain_technology
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With the advent of encryption technology, the financial world has completely changed. While ordinary citizens are trying to understand how does blockchain work, investors are investing billions of pounds in cryptocurrencies.

What does cryptocurrency for society

Imagine how many people are currently employed in the financial world? To get a loan, the user must contact the bank. To pay for a purchase in a store, you must use the services of a payment company. Moreover, each transaction is provided with a huge number of servers and databases.

Directly it is impossible to transfer non-cash money, for this, you need an intermediary. Although commissions are not significant amounts for one person, on a global scale they are measured in billions. Now the situation is changing with great speed. Quite a few people already know how to transfer money to blockchain wallet, while the number of real users is not so big yet. But what will happen when such payments become widespread?

After the initial period of distrust, the financial world accepted cryptocurrency, now it is being developed at the highest level:

  • work is underway to create stable crypto coins, doubles for fiat money;
  • with the help of the blockchain, the rules for attracting equity capital are developed;
  • crypto exchanges receive equal rights with traditional trading platforms;
  • Bitcoin becomes a legitimate financial instrument.

In this chain begins the combination of private and public partnership. Perhaps national cryptocoins will support blockchain mining from personal computers of ordinary citizens.

The principle of the blockchain

So far, transferring funds from one user to another requires an intermediary that cannot be removed from this chain. If you use the crypto encryption procedure, then a technology of direct and safe contact between the seller and the buyer appears. Each miner will monitor the reliability of operations.

It should immediately be said that blockchain work for dummies is not easy to explain. But we will try. First, let's deal with the terms:

  • wallet - a virtual account where funds are stored;
  • password - a set of characters to access the wallet;
  • address - a place in the chain where the funds are located;
  • blockchain - a chain of information about all transactions in the network.

It is noteworthy that Bitcoin uses the technology of open addresses. That is, everyone can find out exactly how much money is in the wallet. And here the question of anonymity was solved in a very original way. Yes, everyone has data on the amount of funds available. But no one knows who exactly they belong to. When registering an account, the user may not even call his name. And what's more, he has the right, if he wishes, to transfer the password to others. That is, the person himself completely controls the capital, without restrictions.

Security and law

The biggest fears of cryptocurrency caused by government agencies. They were worried that criminal structures would show interest in digital assets. This did not happen, as described in the autumn report of the Bank of England and the Treasury.

Financial authorities have recognized the positive effect of the emergence of cryptocurrency and noted the minimal presence of crime in this area. However, the financial industry has already begun to feel the first positive effect. The introduction of new technologies can reduce the cost of transferring funds and ensuring security.

Therefore, we should expect even greater penetration of cryptocurrency in the lives of ordinary people. Thus, the Bank of Sweden is working on the creation of the E-krone. This electronic coin will be issued by the state and have a stable exchange rate to the current national currency.

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