Bitcoin Mining || Blockchain

STAY WITH US

Bitcoin Mining || Blockchain

Bitcoin Mining, Blockchain before I start explaining to you what a blockchain is, first, I want to touch on Bitcoin mining, because there is a myth That Bitcoin Mining is equal to Blockchain, Well, that's not true...


How Bitcoin, Bitcoin Mining and Blockchain Technology Works.


How Bitcoin, Bitcoin Mining and Blockchain Technology Works.
How Bitcoin, Bitcoin Mining and Blockchain Technology Works.


Bitcoin is blockchain and here is why?


Chapter 1:

How Blockchain is Connected to Bitcoin:

Although often called the same. Bitcoin is Cryptographic currency, digital money, which is allowed and kept alive due to the technology called blockchain. When a blockchain the technology began to exist, the first application tested on the platform was Bitcoin.

However, Blockchain is not Bitcoin. I hope that makes sense. Blockchain is so complex that there are still very few people Understand every part of it. In fact,

Because Bitcoin was the first in an application in blockchain technology, one could say that bitcoin is a blockchain, and that might make sense.

Blockchain is so complicated that we (as humans) keep finding more and more ideas That this technology can solve every day. You could say that Blockchain solves problems. 

However, for a large part financial organization, it causes some problems. Some of these issues are addressed, and if you continue the news, you realize that more and more companies are starting to use Blockchain technology for many purposes

Good Blockchain is truly revolutionary, as it is not designed to solve just one issue for some people but can solve many problems for it Each. It has reinvented the financial institution,

The proof of that is simply because a blockchain works and it has Has been around for 12 years, starting in 2008. The Blockchain is a worldwide distributed repository that is completely Decentralized, meaning it has no boss or anyone we can blame or grant. 

It works on all computers, and that's Unstoppable. The blockchain is made up of several blocks that are not interchangeable. That is why its chain system represents the only source of truth.

Once a new block is created that is added to the existing blockchain, it replicates itself on its own the system, resides on the Internet, then simply synchronizes the same information on all the computers running Blockchain.

It is this duplication that makes it irreplaceable. It therefore provides full transparency throughout the administration. Because there is no human intervention in the process of adding and expanding.

Further when new blocks are created Every ten minutes it reveals an efficiency that no one has ever achieved. Because every time becomes a new block Visible to all computers in the world,

It allows full accessibility to all human beings. Where the blockchain currently stands, I'm That is, in 2021, more similar to where the Internet was in 1993-1995.

What happened then most people said, "It's Nonsense, "or" what's the point of this? "True, in the early days of the Internet, there were only a few personalities Computers, very few sites and the network were slow. In fact, it was so slow that if you want to download one A page of PDF document, probably you would have gone out for lunch, come back and still have to wait another 20 minutes.

Internet (linked networks) seems to most people a dumb idea, even to those who have power in politics or Others who already had a large retail infrastructure. 

They believed it was just background noise. Slowly, the internet has grown and become bigger and faster.

Once local online support opened up, everything changed. When You think of Blockchain, do not assume it will not have the same power.

Currently, we are renewing on a large scale and technology is growing so fast that no human can keep up with it.

Blockchain will change that dramatically, so instead of continuing to talk about the future, let's take a step back and understand the history of finances.


Chapter 2:

A Brief History of Funding

The purpose of this chapter is to understand the innovation of our existence. So, let's take a step back a few hundred years. Trade has always existed in our lives, as it is a must for our food chain, and will probably never go away. When you take a closer look at the basic human needs for survival, you quickly realize that the three most important requirements are air, water and food.

Since air and water can be found in many places for free, I will take a sample of food and start analyzing it in more detail. Food items have been identified from an early age as one of man's primary needs for survival. Therefore, we realized that food has tremendous value. Like anything else that has value, it has become part of the global trade chain, and it was one of the first early payment methods among humans in exchange for certain goods or services provided.

Because food has always helped basic survival, this has been one of the best payment methods for an extended period of time. In fact, there are many locations in the world that still use this approach today.

With the advancement of civilization, especially with more developed villages and towns, payment methods began to change. So, we had no freezers or refrigerators and using payments like food products like exotic fruits, or any meat just went to waste. This caused a lot of problems. Therefore, this problem had to be solved. The solution was a new kind of means of payment, something that would not rot or be wasted easily. Nevertheless, food or any other commodity or service had to be exchanged. Shiny metals were introduced to the world as a new means of payment, and such were silver or gold.

Most people did not like the idea at first. Still, it was implemented, and slowly it was widely accepted. It could have been replaced with food and goods or other services and it was really revolutionary, and still today, when you look at the value of money or gold, they are constantly growing. Humans realized that it was becoming much harder to mine gold and silver.

Hence, it was necessary to stop the precious metal as the main payment currency. The introduction of paper money seemed silly, since as human beings, we do not like changes, and we hesitate to adapt to anything we do not understand - at least at first. After a while, all kinds of paper money were applied centrally to almost every country in the world. The new means of payment of paper money was alive and growing all over the world. Paper money is fine, but we can mention countless countries where paper money has repeatedly failed because of its long-term depreciation.

The decline in the value of paper money has other roots, such as easily counterfeiting on a large scale. In addition, like everything else in the world, we have learned that commodities with limited supply have an increase in value, especially in the long run. In contrast, the opposite happens when paper money continues to be printed and decreases in value. When it comes to paper money, it is a fascinating subject.

The fact that we have learned, on various occasions, that paper money is a failure, we continue to invent new ones. We believe this time it will be a success. Look at the example of the euro that took over currencies such as German Mark, French Franc, Italian Pound, Dutch Guilder, Spanish Peseta, Slovak Koruna, Austrian Shilling, Maltese Pound, Finnish Marka, Greek Drachma and more. It seems that paper money will still be present for a while. However, before we jumped forward, we were introduced to another currency after the paper form in our new digital world called SWIFT.

SWIFT represents the Association for Global Interbank Financial Telecommunications. It started in 1973, and the newly created network now allows all financial institutions to transfer secure financial transactions in a reliable environment around the world. This idea was, again, truly revolutionary. Using the internet to make payments is very beneficial, not to mention that nowadays the use of non-contact cards is simply particularly convenient.

The speed of application when making payments becomes very fast. When you are considering an international banking transaction it may take 3-5 days, but you can do it using your home laptop or mobile device, anywhere. But at first - when it was introduced - it seemed foreign, and most people did not believe it would ever work. We are slowly learning that it is possible to automate certain payments:

Such as paying your bills or subscribing to a service, and of course most large companies now pay all their employees through bank transfers. Well, there are still many companies that pay their employees cash in hand, because they are not interested in paying taxes. These companies choose to remain anonymous instead of sharing all their assets with the banks for various reasons. As always, people had to adapt. The idea that all your wealth is on a piece of plastic card was daunting. The world of payments has not yet changed. Centralized banks have grown, and they have introduced many different systems to choose from. Some of the best-known virtual payment methods are Visa debit machines, debit card, credit card and ATM.

Due to the dot-com boom and the Internet revolution, other digital means of payment have been introduced by various third-party companies, which provide additional secure transactions for a certain fee. Although their prices are higher, we have now reached the point of operating international operations with people or companies that we will never have to talk to or see.

Even if we had a problem trusting a business or certain products; We can still continue to make transactions, due to the third party ensuring that payment is completed only after the goods have arrived as described.

For example, you pay for a single product through PayPal, simply because you know that in the worst case you can request a refund and PayPal will help you - make sure you get your refund if the goods or services are not as described when you placed an order.

Such well-known centralized financial systems are PayPal, Payoneer, Alipay, eCash and there are many more. In 2008 a new currency was introduced, but this time it was something very different. It was the first digital currency, called Bitcoin.

It was not introduced by a well-known company or bank, not even a government, but in the form of software - which was operated according to a protocol called Blockchain. As always, not many people were interested in adopting this at first; They did not understand his purpose. This may require some research to understand. We know that cash works and there are many other currencies.

We can make payments using our bank cards, and so many other options, when it comes to making a payment - so why bother, right? Well, Bitcoin was the first digital currency to be introduced. However, as of November 2020 there are more than 7600 different types of digital currencies.

What does this mean for us now? I have friends who do not work in the IT industry, and when I ask them about Bitcoin or cryptocurrencies, they often look at me as if I speak a foreign language.

The reality is that although some may have heard of cryptocurrencies, they still do not bother to explore the potentials - and how much it can, and will, create our future.

What I am trying to tell you is that when you look back in time and analyze the history of financial institutions, you may realize that the form of payments has significantly diminished in physical value.

Not only are they becoming smaller, lighter or thinner, but more virtual, and now to the point where we, humans, do not even have to do them - because digital currencies operate in our current Internet (linked networks).


Chapter 3:

The Basics of Bitcoin

is the first known digital currency to operate in a technology called blockchain. It is completely decentralized. Therefore, no one has control over it. It is also known as electronic money or digital currency. Although, it's a colleague Payment system. As a result, it is software.

It does not have any real presence, because it grows on your computer hard driving. In fact, in every computer that exists in the world. No one will ever touch this currency because it only exists in Digital form. With respect to its value, it seems to be changing. However, it has remained stable for a long time: Moreover, growing continuously. Back in 2008, it began to compete with the dollar - when one bitcoin was equal to 0.05 dollar. But, in December 2017, one bitcoin reached $ 19,497: Its highest value so far.

Over the years, Bitcoin has not Just proved he could reach a peak again and again, but he increased his value higher than we have I have ever experienced with any other currency. We will continue to see the rise in the value of Bitcoin, especially around all four Marking a year. Why should I say that? Well, let's say I have my reasons. How much bitcoin is there? Good Question and you can calculate it yourself. Of course, it all depends on the date and time you read this book.

So come on Check out some of the facts we know for sure before embarking on complex calculations. The first 50 bitcoins were Created on October 31, 2008. Subsequently, an additional 50 Bitcoin were created every ten minutes until 2012. After 2012, The amount of bitcoin production is reduced by half - that is, every ten minutes, 25 new bitcoins are created by 2016. Since then, in 2016, the process followed the same principles - that is, every ten minutes, 12.5 bitcoins were created by 2020.

Since 2020 we are creating 6.25 Bitcoin by 2024. This process will continue until 2140, until there will be 21 million Bitcoin in the market. If you want to know the exact dates when the next drop will apply 

Next, let's talk about some of Bitcoin's bad reputation. If you have not heard of the dark internet, let me explain a little about that. I could dedicate an entire book to the web of darkness, and perhaps in the future as well. I'm not interested in trading Drugs or guns on the net. Just because it's a list of things that can be purchased on the dark internet, does not mean I will never do it Participate in these markets.

What you must understand is that the internet as we know it - through search engines Like google, yahoo or Bing - this is not the only internet there. There is more, and that is called the dark web; it could be Obtained through another search engine called TOR.

The TOR network is also known as the Onion Router or Onion Network. TOR Able to hide end user IP address; Therefore, make everything done online completely Untraceable. Even your ISP did not know which site you visited, but that you visited the site TOR network. You can look around and see for yourself, what kind of services are offered there, but it is up to you.

I have I used to visit the Dark Web to feel it, and the more you look around, the uglier toilets you will find. And I I'm sorry to mention these, but the things I saw were disgusting, and for those who could easily get upset, I was not Highly recommend it at all. My point is that the arms and drug dealers in Tor are asking for payment in the form of Bitcoin. Bitcoin is Untraceable as well as TOR network.

Therefore, the dark internet is a haven for criminals. Do criminals also use Bitcoin? They sure do. In fact, they have no other choice when it comes to illegal goods or services on the Internet. Before you close it Book and stay away from the idea of ​​using Bitcoin because criminals also use it, please think twice. Bitcoin was not Created for criminals. Bitcoin is designed for everyone, and do not forget about those 3 billion people that Bitcoin Can save when it comes to financing. Another issue that happens again and again, is hacked bitcoin accounts, and People are left with empty wallets. Please do not misunderstand this point. It was not Bitcoin that was hacked, but the end User-level victim computers, or mobile devices. The value of Bitcoin has become immense; And hackers do educate Also themselves. So, they changed their game again, and realized that hacking bitcoin accounts is Profitable and untraceable.

So why not does it - especially do it on a large scale? This issue has been addressed, and if you Deciding to own a wallet, you need to make sure that you always back up your wallet, and that you always have all the security Features enabled.

Some of these security features are similar to 2-step verification that does not require much learning or time. Still, it is best to be secure then assuming hackers will never find you. So, because many people have fallen victim to Bitcoin account hacks, they stopped trading or investing in Bitcoin or any digital cryptocurrency.

Maybe you know With the WikiLeaks website - a non-profit organization responsible for publishing classified secrets and information Anonymously. Individual governments are dissatisfied with the site and have taken the site to its closure. God The site requires basic maintenance as well as security, and the only donors who can help were to use Bitcoin. about As a result, the site remains alive to this day.

This is one of the most famous examples. However, there are countless Causes people to be able to help others, even on the other side of the globe, through bitcoin. the most Common speculations and accusations against Bitcoin are its possible fluctuations. Why? Well, people often say, "What if there was another type of cryptocurrency that could compete with Bitcoin using the same basic technology, the Blockchain? Will Bitcoin lose its value?

"The allegations are indeed possible, but if you look at the history of the value of Bitcoin, only significant increases have occurred, even with 7,600 other cryptocurrencies. I am not a futurist until after surgery e Facts, I think it's fair to say, that Bitcoin is on the rise, and will not stop for a long time. To learn exactly how many Up-to-date existing cryptocurrencies,

Further, you may ask; What can you purchase using Bitcoin? Well, you can buy anything on the dark web - of course - I do not recommend, because you may encounter criminals who will try to steal or break into your bitcoin wallet. Some cybercriminals will even try to blackmail you. If you do not provide your details, you should be fine. Realistically, other services besides Bitcoin, such as hotels, restaurants, cafes, and even some takeaway shops. Bitcoin payment methods are now offered.

Large retail companies also accept Bitcoin, such as Shopify, TigerDirect, and many others. To see how wide ranges it can be already, you need to look around your place of residence. The great Cities have all kinds of offers, such as taxi service, hotel industry, bike rental, car rental, private jets, pubs and son On.

You can also consider other large companies that now accept Bitcoin, such as Dell, Microsoft, Zynga, Reddit, WordPress, Subway, Expedia.com, Virgin Galactic, OK Cupip, Stream, Alza, Lionsgate Films, Badoo and many more. By Using gift cards, multiple applications also allow customers to purchase on sites such as Amazon, Walmart, Target, Nike, GAP, Sears, Papa Jones, Best Buy, iTunes, eBay, Starbucks, Zappo, HOME Warehouse and many more. I wanted you to do that See that some of the big companies are already adapting to the idea of ​​getting Bitcoin.

Moreover, understand the variety of goods and services that can be purchased, please browse the list of categories you choose Airline, car, beauty, clothing, department stores, e-commerce, electronics, gas, gifts and toys, grocery, health, Home and garden, home renovation, hotels, jewelry, movies, pets, restaurants, shoes, sports equipment and more. as You see, the categories keep growing, and if you're more interested in which stores you can pay with Bitcoin, you May check what you have nearby, or what online platforms can provide for your area. 

Further, you may ask; How come not everyone uses Bitcoin? Well, the reality is that most people already are Aware of the existence of Bitcoin, too lazy to conduct research in order to better understand its potential. personally, I first heard about Bitcoin in 2014, and didn’t look at it that much. What I understood was that Bitcoin is some kind of an online means of payment, and mostly criminals have used it because it cannot be tracked. that's it. I follow the news, and somehow, no one seems to talk about it unless there is a significant cyber-attack, and the hackers would demand ransom, Or any payment in the form of Bitcoin.

Anyway, at the end of 2015 I heard about Bitcoin again, so I mentioned it to myself Friend Jack. He says yes, he is aware of Bitcoin and its value was about $ 300. When Jack told me how much it was worth at the time, I did not believe that one bitcoin was worth $ 300. I still do not understand what Bitcoin is. I believed it was like a real physical currency, I still had no idea it existed only digitally. Then another friend Steve, who Heard what we were talking about, said he does not believe I have ever heard of Bitcoin! So, I said, "Yeah, I heard about it, but I did not know it was so worth it.

" I started thinking about it more and more, and I started Do some research. A little later I had an idea to make bitcoin using my old laptop! So, I told Steve, and Jack I heard That computers could produce bitcoin, and if it's worth $ 300 each, I might be able to produce one or two each week. Obviously, I had no idea what I was talking about, and they told me it was not that easy. However, they could not explain It's me, how exactly is it done. They said Bitcoin is for criminals.

But I stated that it sounds exciting technology. They replied, "Okay, so why do you need Bitcoin? What do you want to buy? Do you want to buy something on the dark web? "They turned me on without words, so I stopped talking about it. Still, I secretly start learning as much as possible About Bitcoin and of course that leads me to another interesting technology called blockchain. My point is that most people Mispleaded by fake news, and for those who might be interested, it takes a long time to figure out how bitcoin or Blockchain works. Therefore, most people give up research, and will not interfere in any way.


Chapter 4:

White Press Release

The Lehman brothers collapsed on September 15, 2008. The largest bankruptcy ever in U.S. history took place. The Lehman brothers also operated in other countries, and the result of that day was no different anywhere Other. Following the Lehman brothers, there were many other banks and financial institutions that had no choice, Director. For months every news channel was full of the latest stories that another big company had lost all of its own Assets, over and over again. At the same time, unemployment began to rise, and then slowly, lots of people started losing their Homes due to incomplete payments. Most small businesses were forced to close.

There were fewer customers in A restaurant, and people thought twice before spending money on something. The financial crash caused a lot Suffering, and not just in the U.S. or the UK, but also in many other countries, which are still in a state of recession ever since. Property prices began to fall, and finding a new job was not easy, even over-qualified people applied for jobs Everywhere.

There were not enough vacancies to fill the growing demand. Most people followed the news - That most of the time is manipulation and that is just the goal to create drama and fear among hard working people. Media control is a great way to manipulate people, their beliefs and freedom. Media use - such as news Channels and Newspapers - Reaching people, is indeed one of the best ways to create slaves, by believing in it the world is exactly what the media provides.

Just think of an average day where you meet like 10 people. someone, if not many of them will tell you a story that begins like this, "Have you heard of (XYZ)" next, someone else will ask, "Where did you hear that?" The answer would be similar to something like, "I heard it on the news channel XYZ, or on News, or read it in the XYZ newspaper. "Everything is so big news for days, sometimes for weeks, and then all of a sudden - everything Will forget.

how could it be? Pretty funny, at about the same time, in an unsolicited online forum, an article was published for A mailing list of encryptions on metzdown.com, titled: "Bitcoin". The subtitle was: "Fellow-to-Fellow Electronic Cash System". So, what is that? It's not from CNN, or BBC, NBC, CNBC, or whatever you call it the news channel.

Therefore, it must be Nonsense, right? Yes, this is probably fake news, and whatever it is, it seems too complicated. Therefore, it did not provoke the interest of someone. This white paper was released in October 2008, less than two months after the biggest financial crash In history. The author called himself Satoshi Nakamoto and explained some points related to this new digital currency Called Bitcoin.

He stated that he believed he had found the solution to the biggest issue facing us and he called the Blockchain technology. He also explained not only how it works, but that this system has already been created and is Works in the form of software that uses the current Internet as its platform.

There is a lot of speculation about this, and you May find multiple answers as to what exactly happened; The most important of these are - why now? how could it be Such a serious document was published right after the biggest financial crash in history? Well, maybe we'll find out sometime Soon, but the possibility remains that we will never know what caused the blockchain technology to be born.

You can check out the original publication of the Bitcoin Whitepaper on the following website: https://www.metzdowd.com/pipermail/cryptography/2008-October/014810.html


Chapter 5:

Author of the journal

It may be this new light Could be spilled who is Satoshi Nakamoto. With current knowledge at hand, let's try to understand who Satoshi Nakamoto is. First of all, Satoshi Nakamoto is the inventor of Bitcoin as well as blockchain technology. Along the way it is a fake name.

This is how he introduced himself to the Internet. It's men's name. However, it is possible that the Satoshi Nakamoto may be a woman. This is one of the great mysteries in the world of technology. However, most people do not want to Know exactly who Satoshi is; However, they are grateful for the technology he has created.

Unfortunately, many people Think that because Satoshi Nakamoto invented Bitcoin and blockchain technology, he also owns these also. The reality is that Satoshi Nakamoto has no control over the blockchain - not Bitcoin; Therefore, it really is not important who Satoshi Nakamoto is.

But we still want to know who is behind the curtains; So, let's think about it again. Satoshi Nakamoto is reasonably a man or a woman - of course - he can be a couple, a group of people, or even a group of Women for all we know.

Satoshi Nakamoto may be ten people together but can be a massive team of 100 people Individuals. Satoshi Nakamoto may be a child, or he may be old. Satoshi Nakamoto may have died right after him Release his white paper;

So, he did not have time to show his true face. I do understand if you are bored These accusations, so let's start thinking in a different perspective. Satoshi Nakamoto may not even be human.

Well, you might think I'm over the limit. However, it's just so weird we could not figure out who Satoshi Nakamoto is Last decade; Not where he lived, but who he is - honestly - we have no idea. Anyone can know exactly who he is. Still, there is no evidence that there will ever be enough evidence to prove who Satoshi is. Back in the day, some science fiction the stories presented individual objects, or tools that we might use in the future, and some that we have already used Years.

I do not want to go into too much detail; However, think of face-to-face conversations in the 80s. It was a concept That one day we can do it. And nowadays Skype Video and Facebook Chat are in our daily lives. in fact, there are millions of people connected and able to be in video skype chat for hours using our cell phones. the first one the iPhone was created and launched to the market in 2007. Since then, we have undergone some dramatic changes.

The next decade will be even more impressive. We got a technology called Blockchain from an unknown person - or from me Needless to say from an anonymous source - it will change our world dramatically! I do not suggest that there are aliens Out there, but I also cannot deny it. What I can tell you is that IT people, software developers, experience Programmers, and even cyber security experts are fascinated by this technology, often calling it foreign technology.

The blockchain is huge, and it certainly takes months, if not years, to fully understand its technical details, and how it fits together. Another thing is that it is more and more often said that this technology is simply too complex for one person to do to build. Therefore, there is no chance that Satoshi Nakamoto worked on it alone. So back to the million-dollar question, “Who is Satoshi Nakamoto?" Let’s take a look at some of the claims over the years so you can decide for yourself.

What do you It should be understood that Satoshi Nakamoto fell silent in 2009 and remained so for the next five years, or at least In the forum where he posted in the past and has always been active? Supposedly, Satoshi Nakamoto was a 41-year-old man Bitcoin White Paper Release Time. Is from Japan. However, the first code written for Blockchain was recruited in English which is so perfect.

It just does not make sense for a Japanese man to write like that. It Indicate that he must have hired someone, or worked with someone, who speaks and writes perfect English Write the code. In 2014 there were several newspapers that started writing about Dorian Nakamoto, who lived at the time United States in California.

Dorian's birth name was Satoshi. In addition, other circumstances will cause him to appear Be a true inventor of a blockchain. Apparently, the first reporter who wanted to reach him, asked him, in the form of email, if it had a connection to Bitcoin.

Dorian's response was as follows:

“I am no longer involved in that, and I cannot discuss it. It’s been turned over to other people. They are in charge of it now. I no longer have any connection.’’ 

It was suspicious, and reporters were all over Dorian's home in California. Realizing it was very serious, he looked at his e-mail again and tried to explain himself. First, he denied any involvement in relation to Bitcoin. In fact, he said he had no idea what Bitcoin was until his son told him about the news, so he searched it online.

He also became famous and explained the following:

"I have nothing to do with Bitcoin. It has nothing to do with development. I was just an engineer; I did something else. If you look at the time spent in 2001, I was not there. I worked for the government through a contractor. I just believe someone just put that fictitious name.”

Documents were also released that he was performing classified work for the United States government as well as the United States military. He also signed documents that he could not admit to involvement in his previous work regarding secret projects. After this incident, there was an unexpected post in the P2P forum where Satoshi Nakamoto used to post after five years of silence.

"I'm not Dorian Nakamoto."

Later, Craig Wright, who is a well-known Australian businessman, in 2015 became the next possible man who could be the real Satoshi Nakamoto. From an anonymous source, documents about Craig Wright began to leak to Wired magazine. Most of them had evidence that it looked like Craig Wright might be Satoshi himself.

One of them, released in August 2008, Craig himself has stated that he is thinking of releasing cryptocurrency. Craig became a very attractive candidate for the original white paper published by Satoshi Nakamoto and released in October 2008, just a month later. Another leak, also issued by Wired magazine, was another statement by Craig Wright, but the one dated as early as January 2009.

This time he wrote that Bitcoin was about to launch. Indeed, in January 2009 the first Bitcoin started operating. In addition, Wired magazine also stated that they had received several emails and transcripts that collaborated on the link.

"There's a message leaked by Wright to his lawyer from June 2008 in which Wright imagines a distributed P2P account book.

There have been a lot of leaks in relation to Craig Wright, especially in Wired magazine. However, everything changed in May 2016. Craig Wright stated on his blog that he is now ready to publicly admit that he is Satoshi Nakamoto.

This was another turning point; But people remained skeptical. Two days later Craig wrote on his blog that he would finally release a series of works that would lay the groundwork for his extraordinary claim. Although instead of providing evidence, Craig replaced the following message:

"I'm sorry I believed I could do that. I felt I could put the years of anonymity and hide behind. But the events of the week were discovered, and I was preparing to publish the proof of access to the earliest keys, I broke. I have no courage. I cannot.

When the rumors started my skills and character were attacked. When it has been proven that these claims are false, new claims have already begun. I know this weakness will do considerable damage to those who supported me, and especially to John Matonis and Gavin Andersen. I can only hope that their dignity and credibility are not tainted by correction by deeds. They are not deceived, but I know the world will never believe it now. I can only say 

I'm sorry and goodbye. ''

Because Craig provided no proof that he was the real Satoshi, the Bitcoin community portrayed him as a liar. Then, there was another great action by Craig. He asked the BBC for an interview. So, he explained that he was Satoshi Nakamoto, and he invented Bitcoin. Craig also stated that he would not receive any prize or award for this work, as he was not interested in money or anything from anyone, and certainly did not need help from anyone.

When the reporter questioned him as to why he had been hiding all these years and how he had identified himself right now, he had a relatively simple answer. Craig said he has not decided to confront the cameras, as he has people who have chosen it for him, which he is not happy with in the current present, as this situation will hurt many of his friends and family, as well as his staff.

Later, the reporter asked him what he wanted with the idea of ​​being the creator of Bitcoin, but his answer was that he did not want anything, just to continue working on his projects.

Craig explained that just because he created Bitcoin, or published a free document in public, so that he could help people, does not mean he should become a well-known star, and certainly no one should force him to admit what projects he is working on.

Then he added that he is the main person behind the creation of Bitcoin. But he helped finish it. The reporter later mentioned something that most people are interested in. As the inventor of Bitcoin, Craig must get the 5% of all Bitcoin saved, which is a huge amount of money.

As always when traders sell bitcoin for a dollar, the value of bitcoin goes down. However, because the inventor has so much of it, there is concern that if the designer sold it all when the price was high, Bitcoin would probably change.

So later, the reporter asked him how much bitcoin he has, and how much he has retired so far. Craig just replied that it does not matter how many he has, instead of what matters when he will actually deploy them.

Then Craig ended his speech with an explanation that he knows there are people who will believe him, and there are those who will not, but he does not care because he will never be in front of the camera.

The reality is that Craig is very convincing and personally I do not know what to say. I will not judge him or Dorian, but the world we live in is certainly strange for sure. Just think about it. First, we expect someone who does not claim that there is no involvement, and then we find a person who admits that he is, and we do not believe him.

It sounds like we'll never find out who the real Satoshi is, right? Craig demonstrated how he started the first bitcoin deal. However, he only allowed one person to see it, and it was a reporter who had no technical knowledge. The average tech guru is not convinced. Also, Craig claimed he never wanted to go out and be in front of the cameras.

And yet, now that he's done it - claimed to be the real Satoshi - he brings the evidence that he made the first bitcoin deal and has options on how he should demonstrate the proof. One of the right ways to do this, is for someone like a Bitcoin expert to see it, who can also verify that he is not lying.

His way is a bit fake, because no one can confirm 100% that he really is who he claims to be. So, what's the point? Well, there are people who have speculated that if Craig claims the title Satoshi, the real Satoshi will send a message in some way so he can track him down.

However, Since then there has been no news from the real Satoshi, as in the case of Dorian. When you think about it, if you were, secretly, one of the richest men on earth, would you go to the BBC and tell the world? Talking to the world not only involves popularity with average people, but immediately puts Craig in the spotlight of cybercriminals and hackers of black hats.

It's so simple that someone will understand it right away. So, when you think of someone who is genius enough to implement technology that will change, in fact will already change the world, would you not think of hackers? Most IT people just aren’t convinced enough;

Therefore, the question remains who the real Satoshi Nakamoto is. Some people believe that the genius behind blockchain technology is Craig; Some believe it's Dorian. However, most people in the Bitcoin community do not think that each of them has anything to do with Bitcoin or blockchain. In fact, 70-80% of people believe in various other options, so let me explain to you some of them.

According to some researchers, one of the biggest theories is that Nick Sabo may have written the white paper of bitcoin. When compared to more than ten possible people who might be related to the creation of Bitcoin, Szabo's writings were the closest, linguistically, to the original white paper published by Satoshi Nakamoto. Nick Sabo is a computer scientist.

In addition, he is also an excellent cryptographer and a well-known Bitcoin expert. In addition, he is famous for his speeches regarding blockchain technology, digital currencies and smart contracts. Many people have interests in each of these issues. In particular, speakers are known for Blockchain or Bitcoin.

However, not many people are aware of what some of the so-called experts did before the birth of Bitcoin. Nick Sabo, on the other hand, had an idea for a distributed digital currency back in 1998 that he called "Beat Gold." What a coincidence, right? Nick not only had the idea, but he also developed a mechanism for it, and eventually created the Bit Gold.

Nick did not post on his blogs every day. In fact, it was not known that he was publishing anything: but when Bitcoin was created, back in 2008 - just two months after the official release of Bitcoin - Nick started writing about Gold Bit more in depth. In fact, not much is known about him, a great example is that Nick's date of birth has not even been confirmed by anyone so far, and as a result other curious people have started researching Nick even more.

According to Wikipedia, Nick was a law professor at George Washington University; But after contacting the university, they found no documentation of anyone with the name Nick Sabo. This, again, suggested that his real name could not even be Nick Sabo, since it could be his pen name. Very little is known about Nick because there is no age, education, location and not even a former job profession.

Therefore, within the world of technology, it has become the number one candidate for the birthplace of Bitcoin. Apparently, whenever asked if he had anything to do with Bitcoin, he always denied it, and for some time now, he has been silent again. Unfortunately, when it comes to media, there is so much fake news that it is simply unbelievable.

At the beginning of the 21st century the Internet was the only source of actual news; But now that most of the newspapers have moved to the Internet, it takes a huge amount of time to investigate the truth.

That being said, most of those who have always tried to find the truth, do not read fake newspapers and news channels, and I am talking about IT people who only learn about technology. Although when a technological invention, like a blockchain, hits the news, nerds become obsessed with discovering who exactly such a great designer is, and they start doing the research until they find the truth.

As far as it seems, most technology gurus point to Nick Sabo as a true creator of Bitcoin. When it comes to potential candidates of the father of blockchain technology, there are many discounts. It all depends on who you ask; However, I wanted to introduce some of the main characters that may be somewhat involved in creating Bitcoin.

Many people believe that a blockchain, because of its complexity, might have involved many characters instead of just one particular person. When Craig was asked, he said he had help. However, he was the main person behind it all. Therefore, many began to believe not in Craig, but that Satoshi Nakamoto could represent a group of people instead of the person's name.

In Japanese, Satoshi means clear or wise thinking, Naka means from within, and motto means beam. These three words can be put together in many ways. However, one of the most common is that he, or the team, announce something like: I'm smart, and I fully understand this system from the inside out. You can exchange the "I" with us. Still, Blockchain was certainly not a product of error.

The creation of this technology did require clear thinking and must be able to fully understand all the details in which, and finally, a blockchain is a big base. Opposite thinkers are sure to say that due to the structure of the blockchain, the idea must have been born in one head. Therefore, having a team that thinks together, creating something similar, will not be as detailed as it is.

I'm talking about people who are not average technicians, but software developers, and have been a part of building the internet since the early ages. Again, Nick Sabo comes to mind, instead of an Australian business magnet, also not an old Japanese man who has not been involved in anything for an extended period of time. I will now close this chapter, and let your imagination decide who Satoshi Nakamoto is.

And yet, as I mentioned earlier, it can all depend on the date of reading this book; But for now, more than a decade after the invention of blockchain technology, we still have no proof to prove 100% who Satoshi is.


Chapter 6:

Distributed Accounting System

I would like you to think of the book of accounts as a family tree; But instead of people's names, the huge account book system holds payment value information and addresses. As for the amount values, the invoice holds all the payment records back to the first transaction ever made. As for the URLs, there are no URLs or URLs. Instead, it is Bitcoin, or any other currency address.

The ledger holds a series of transactions of all cryptocurrencies. In addition, current values ​​are constantly calculated from previous transfers. One part of the ledger represents the allotted value, other parts of the ledger represent the date and time of each transaction. It is very similar to any of the current banking systems.

You can see who transferred to what account, what date and time, as well as how much each transaction was; However, there is no banker in the register. Also, the inscriptions do not represent names of people, and no one holds any amount;

Therefore, you can call it an anonymous book system. What you need to understand is that when it comes to the bank account of an individual who has no relatives, the bank can seize that account. In addition to banks, even the police, the FBI, or any government entity can take any bank account if they find a possible reason for it.

When it comes to a Bitcoin account within the big ledger, the only person who can access it is the person who has the password for that account. Of course, this is dangerous; If you accidentally lose the password to your bitcoin wallet that holds the book, any value it has will be lost forever.

With your bank account, if you lose your password, you call the bank, they ask security questions, and once you prove you own that account, the bank will provide you with access.

On the other hand, having a Bitcoin account, no bank will be able to help you access your account. The book of accounts is visible to everyone because it is a complete concentration. Therefore, everyone can see your bitcoin account as well as how much value this wallet has.

However, no one can know that the account is connected to you. To view a bitcoin transaction in real time, visit the following website:

https://www.blockchain.com/btc/unconfirmed-transactions

Once you are there, you can select any address from the live transaction, then click on the "hash" entry, which is usually a very long address. This will take you to the "Summary" page. Then in the summary, you will see the date and who sent to whom what amount of value in both Bituin and Dollar, and you will also see the commission charged by the network for that particular transaction.

Then, if you click on one of those addresses, you will send the person who sent the bitcoin and the person who received it, it will lead you to the "Address" page where you can see all the transaction made in the past as well as the total amount ever received and the total amount. Sent ever from this particular address.

Due to the blockchain technology, every transaction is approved for its validity and goes into block; Then each block will join previously valid blocks, and then eventually they will all form a chain of blocks that we call Blockchain. Every Bitcoin citizen is required to keep a copy of the blockchain, after each block created by the system, each member of the blockchain gets a final closed block. Then the system automatically checks each block and adds each block to each citizen.

This is how Blockchain holds every transaction and every value ever created. These methods ensure the legitimacy and amendment of any transaction without any central authority. If everything that sounds familiar to you is unfamiliar, just understand that it is completely automated by the system, and you, as a Bitcoin citizen, do not need to do any calculation, and it will probably take a long time anyway.

Each transaction, after verification, is sealed in the ledger; This process is carried out by the miners. When a new verified block arrives, each new block must be added to each citizen's blockchain; However, before accepting the new block, everyone checks the logical continuation of all the values ​​in the new block, to make sure all the cost transfers are legitimate. It also prevents any duplication of transfers, or any forgery made by hackers, or people with bad intentions, who try to steal Bitcoin or any other currency.

This is a crucial step, as this verification will remain within the large ledger and within the blockchain forever. This process uses exposures to the competition, to validate each block, and make sure every citizen gets the same record. Hopefully, I did not get confused by adding a few more bits to how the ledger is distributed and what process it uses to verify each transaction. The reality is that technically multiple protocols work together to achieve any validation process.

Also, you need to understand that thousands of actions are done every second. As a result, I avoided the technicalities as much as possible. Also, if you are interested in seeing blockages in real life, you can visit the following site: 

https://www.blockchain.com/btc/blocks?page=1

Once there, you can see the "height" of each block, the "hash" of each block, when that block is mined, a "miner" that is the mining pool and the size of each block. Out of curiosity, you can check out this page and click on any miner or hash of the block, but maybe you're thinking who the miners are in the first place, right? Well, we will discuss the firstborn in the following chapters.


Chapter 7:

Who are Bitcoin Miners.

Let's think about how a new value enters the system. Back in 2008, Satoshi Nakamoto created just 50,000 bitcoins to start the process. If you think about it, if he had built all 21 million in the first place, Bitcoin would have been worthless, and the idea would have been dumb. Instead, Satoshi started with a moderate amount of bitcoin creation.

However, as the bitcoin community grows, more and more value will be required for the system to survive. There is a particular process required to maintain the system; Satoshi invented the solution by creating a role. This solution is not just one solution, but two issues: Regular verification of transactions and adding new value to the existing system. The role is called "miner". Miners can be individuals, or any bitcoin citizen.

However, over time many large companies have been established, such as Genesis Mining, AntPool, Slush Pool, F2Pool, where you as an individual can join and rent their mining facilities. There are many other miners who over the years have created a pool, and many of them also offer to join these pools for certain reasons which I will discuss soon.

Here you will see all the pools, but you may see a large percentage of them or "unknown". This is not the company name of course, but these miners solve blocks or bitcoin miners using a TOR browser. Basically, they do not want to share with anyone who they are and where they are.

First, let me explain why they are called miners and what they do. They are called reactors because the analogy with gold or any other precious metal is used. They work together to create a new value, similar to gold miners digging underground. However, Bitcoin miners seal every transaction on the invoice.

So, we can call the miners, the final or the verifier. To be rewarded for such work, the miners receive bitcoin, thus adding new value to the system. The miners verify, validate, approve and terminate the transactions by specific processes. Once the miners have created a new block that is acceptable to the citizens, the registration of the deal cannot be changed, making it permanent information. It will also become irreversible. Therefore, no one can ever challenge it or change it in the future.

The miners seal the blocks, which in themselves can take a huge amount of computing and ensure that they will not be easily duplicated. There are several methods that any miner can use in the verification processes. Some miners may use different software, and even create their own home software to speed up the verification process. However, it does not matter what software they use, because all their work will be tested.

It starts when a miner starts collecting transactions that have been broadcast on the network, then starts checking those transactions, and eventually seals the transfers and operations collections to a new block. Miner receives Bitcoin as a reward for each atomic block added to the blockchain.


Chapter 8:

How Bitcoin is Created

An explanation for creating each block can be done in a number of ways and sounds very much confusing but it also depends on your understanding of the technology. Therefore, it can be difficult to understand hearing or reading for the first time.

I have already explained that miners have an exceptional role in verifying any transaction in the form of a block. Now, let's discuss what it takes to create each block.

  • Start a new block. Even if the miners have half done to block a block, they will eventually drop everything and concentrate on starting a new block.
  • Select a new transaction. This is when the miners choose from thousands of operations broadcast on the network.
  • Check transaction priority. This time the miners can return to first place by opening a new block if they discover that the deal, they have chosen in the past is not so significant. However, if the priority is high, the miners may continue to move on to the next stage.
  • Check that the transaction is valid. This is a process that every miner must check, it is no exception to avoid this step for every miner. However, if the transaction is found to be counterfeit or invalid, the miners must stop the process, and go back to number 1 and start a new block and get another transaction, hopefully, valid.
  • Accept the deal. If the previous transaction was checked as a valid transaction, it must be accepted.
  • Seal the deal. Again, if the deal was found to be valid and acceptable, now is the time to seal the deal.
  • Add the transaction to the transaction tree within the block. This process can only be done after verifying all the previous steps.
  • Check the size of the transactions. The miners should check if there are enough transactions inside the transaction tree to seal the blockage.
  • If there are still not enough transactions, the miner will not be able to seal the block until there are enough transactions. Miners must therefore return to number 2 of choosing a new deal over and over again, until there are enough deals to seal the blockage.
  • Check for disturbances. This is the process by which the miner must make sure that no other miners have sealed the blockage in the meantime with the same transactions within the block.
  • Seal the block. Once there are enough deals to seal the block, the miners will seal the block.
  • Broadcast the block. The miners must broadcast the newly sealed block; However, if the reactors were disrupted in the process of sealing the blocks, they may have to start a new block again.
  • Start a new block. This is the next step in the process; However, as you can see, we have now returned to step number 1. As I mentioned earlier, miners may interfere while they seal the block and once, they transmit it, if another block has been sealed by another miner with the same transactions within a block, the blockage will not be accepted. Therefore, they have to open a new block.


Each block is created about every 10 minutes. As a result, 144 blockages are created every day. Miners who have successfully added a new blockchain to the blockchain are rewarded with a measure of Bitcoin. The reward for each new block creation was previously 50 bitcoins from 2008 to 2012.

The reward for a new block decrease by half every four years; Therefore, from 2012, until 2016, the prize for each new block was 25 Bitcoin. By 2020 the payoff for the miner on a new block added to the blockchain was 12.5 bitcoin:

But since 2020, it's only 6.25 Bitcoin by 2024. From 2024 the prize will drop to 3.125 Bitcoin by 2028 and so one. This process will continue until 2140 until the last Bitcoin is created.


Chapter 9:

How secure is the Blockchain

You may be thinking, "Okay, okay, blockchain is a high technology that will change the world in a positive way." But the question arises "Is it secure?" The short answer is yes.

But first, let's think about what the system has achieved at the moment. The reality is that anything connected to the Internet can be hacked and compromised or connected to a system that has the Internet connection.

Many devices do not use any connection and can still be disconnected once you have physical access to it. Such can be a laptop or desktop computer that can be disassembled using a Linux CD and run using it. If you want to go further, let's look at banks for example. They compromise all the time;

Of course, they stopped declaring such incidents, as they would have no customers left if they continued to do so. The FBI director was hacked by a teenager in late 2015, and most people think it's funny. Still, when you think about security within the FBI, it's very organized, but still hacked. The FBI may not be the best example to mention, since even Kevin Mitnick broke into the FBI for three long years, listening to agents' phone calls while agents talked about Kevin.

Every time they talked about Kevin when they found out where he was staying and they would raid his place, Kevin knew about it, so if he just moved somewhere else. When you look at the NSA, also known as the National Security Agency, you've probably heard of Edward Snowden, who came out with documents that are considered confidential; It still shows that even the NSA has weaknesses. Confidential secrets or even secrets can be leaked.

All expensive firewalls, intrusion prevention systems or intrusion detection systems are worthless if not upgraded properly. Also, you need to understand that all this security does not mean anything if someone has social engineering skill and discovers the password for each of these devices.

The result will be dramatic, and always will be, but most major financial institutions have stopped talking to the news channels about harming hackers because it will only hurt their image, and it will become embarrassing.

Because companies keep all their data centralized, hackers only have to go after a specific organization to compromise on their systems; This is why hackers know for sure that anything can be hacked. Breaking into any system, it's just a matter of time and proper planning; However, when it comes to a system like Blockchain, it is very unlikely. Even though experts say it is not impossible, it will still require a huge amount of computing.

Blockchain has no firewalls or detection or prevention system to protect it. Instead, the power of a blockchain stems from the fact that it is completely decentralized. What I mean by that is really simple. Although, I will do my best to explain this in everyday English. Because Blockchain is open-source technology, anyone can run the software. You can choose not to ever buy Bitcoin or invest in any currency. However, you may be part of the Blockchain community by running a software called Blockchain.

The software itself is free to download and use, and you will have no obligation to anyone, but once you decide to run it, you simply become part of the blockchain community. Once you become such a friend, your device will become part of a blockchain and every time a new block is created your device will also receive a copy of the same transaction. Since your device has now become part of a blockchain, this is another device that needs to be hacked to thoroughly damage the blockchain.

Because your device is currently running blockchain software, it now also contributes to the existing distributed system. No duplicate copies and each user trust the same way as everyone else. I mean there is no main node, because every single device has the same duplicate information, making it almost impossible to hack. The blockchain has been running for almost a decade, and has never been compromised, not even once.

This is fascinating, because the blockchain has a sum of $ 7 billion for anyone who can compromise on the system, which is offered anonymously. Due to the price on the blockchain head, it has become the main target for hackers of many black hats, as well as large criminal organizations, and cyber gangs, for years. Still, the blockchain has not yet been breached, not even a slowdown of any kind has ever happened.

This shows that the core roles have been well constructed; But, as I mentioned earlier, anything can be hacked, because it's just a matter of time. IT professionals always believe that with technology expanding rapidly, in the future, anything is possible. Quantum technology defines the way in which the blockchain system can be hacked. However, this would require hacking into a million n plus machines currently running the blockchain software.

In addition, in order to hack all of these devices, it will be necessary to implement it very quickly in order to be successful. Speculations about Satoshi himself are still in the shadows;

Moreover, since we do not know who he is and what he is capable of, one thing is certain: he designed the system. Therefore, he will have access to the first block he has created, and he will be able to operate the blockchain system if he so desires. As time has passed there are now multiple blockchain technologies, and Bitcoin itself has increased in value;

People have also started investing large amounts in various cryptocurrencies. Over the years people have lost interest in who really is Satoshi Nakamoto, or is he, simply, forgotten; However, if he or she is alive and decides to manipulate the system, it may be possible, and I am sure the result will be the most preferred.


Chapter 10:

Understanding business goals

There are a lot of geeks in technology, including me. Even though there are people who are different from each other. How do I define a nerd for you? Well, there are many different types out there, so let me start first with friendly geeks.

Video games have changed the world, and many teens, or even adults, have become obsessed with their favorite games. For those who have never played online games straight for a night or an entire day, or both, for days - it may be difficult to understand why some people are addicted to video games.

Those who just love to play and spend money on games is one thing, but there are other types of geeks as well. There are nerds who are obsessed with new tools and software and believe that they must experiment as soon as possible, even if some of these programs are illegally downloaded from coverage sites.

There are also other geeks, who would not necessarily download everything for free, but instead would purchase the original software or tools to feel better by having the real thing. Authentic software always provides a better feel, and many geeks buy it out of respect for creators and contribute to software developers and designers. When it comes to blockchain, there are many newly created companies that are planning a particular protocol that will allow them to play certain online games using their own cryptocurrency.

Plus, they have created excellent online games that once gamers join and play, they will participate in their cryptography by providing a processor or GPU power from their gaming computer, PlayStations, X-Box-s and so on. Because these protocols will be fully utilized and continuously donated, their value will begin to rise dramatically. As you can see, Blockchain will allow you to create not just a new cryptography, but an online gaming community that will use certain Blockchain technology.

I mentioned an example of games. On the other hand, there are many companies today that are engaged in similar blockchain technology, such as on-demand music, on-demand movies, social networking sites and so on. One of the great inventions so far, using the Blockchain, is the creation of smart contracts, like Ethereum. There are many other blockchain chains that exist to this day, and each one will shape our future at some point. To mention a few other important options, there are various decentralized crowd funding, health services, supply chain, blogging sites and real-time sharing; But the biggest of all is IoT.

IoT, also known as the Internet of Things, for Blockchain has grown rapidly in recent years. The Internet of Things is also called smart devices, or connected devices, which are physical devices, or even driverless vehicles. The purpose of these devices is to connect to the network and start sharing data with each other.

Automating everyday life is a small-scale business, like software, electronics and sensors that would connect to each other. However, when it comes to large scale, this is where the little money is, like virtual power plants, smart homes, smart transportation, or even smart cities capable of operating using blockchain technology.

There are large-scale business plans that require years of planning; However, the technology that enables this now exists. These projects will provide opportunities for the direct integration of the physical world into computer-based systems, resulting in improved efficiency, accuracy and economic benefit in addition to reducing human intervention.

M2M - Machine to machine communication already exists. But Blockchain will improve it beyond that, by accelerating virtualizations and relying on data collection for blocks, which will help use our data more efficiently.

Currently, there are thousands of banks all over the world. Therefore, the current banking system will not stop tomorrow. It will require you to have at least a decade, if not two. But the technology already exists for use in methods other than banks, all that is required is that the implementation of the blockchain technology by all our business partners, or employees or employers. It's really simple. However, most of us are very comfortable with the current system.

Therefore, the change may take a long time. When gold was used as a currency and paper money was applied, it took many years to implement and make everyone understand that now they do not pay wages in gold, but with paper. As I mentioned earlier, gold is still an excellent means of payment in most countries;

But this is not acceptable everywhere. When you go to the local supermarket, you cannot pay in gold, well some places are possible; However, most places will not accept this. Same as when you buy something online, you cannot pay in gold, and there are other reasons because it is an old method. First, let's look at the flexibility of gold. Imagine you want to go to the local cafe to grab a cappuccino.

The idea of ​​paying in gold for a cappuccino is daunting. How would you break or cut the right amount of gold for the store owner, other than the point, what if you made a larger cut than you originally intended?

The point is that not every precious metal can be widely applied as a means of payment. it's heavy; It is difficult to cut or break to the right number of parts required; Therefore, the idea of ​​using it in the future for money is not appropriate. Unfortunately, paper money or cash continue to print all the time. Therefore, it is impossible to know how many are on the market.

The more it is printed, the less it is worth. From history we have learned that after a while there is so much cash that is printed that eventually everything becomes worthless. Inflation becomes the main issue, many people become poor with all the money saved in the bank, and then governments start printing new paper money for the so-called new economy.

The problem is that this system has failed miserably - many times; As a result, we all know it's worthless. The problem is that this system is centralized by governments and banks that average people have no power to go against. Digital currency on the other hand is unstoppable, and such as Bitcoin, can change the current system very quickly.

Another issue with paper money is that it is very easily counterfeited. There are countless events every day involving all kinds of paper money. It does not matter how much money is made from paper; It can be duplicated.

As a result, fakes will always be around. On the other hand, cryptocurrencies cannot be counterfeited, cannot be copied, nor can they be counterfeited. Because Blockchain represents trust and the exact amount of digital money, taking into account just that, you need to understand that cryptocurrencies can easily bypass all paper money, especially if they are concentrated. Only 21 million bitcoins will ever be created. So how can there be enough for everyone? Well, all Bitcoin.

There are 100 million Satoshi. I'm not that good at math, so I used a calculator to figure out how much Satoshi would ever be produced, and the number looked like this: 2,100,000,000,000,000,000. There are almost 8 billion people living on the planet. So next, I divided the huge number by 8 billion, to understand how much Satoshi each person on earth could have divided equally.

The number I received is: 262,500. The reality is that right now, 60% of the population will never save $ 20,000.00 in their entire lives; But before you think that this is the end result; Let me tell you something else. The blockchain technology makes it possible to break any Satoshi into other fragments such as an additional 100 million pieces, and if that is still not enough, these fragments can be divided into another 100 million even smaller pieces, and so on and so forth.

However, I hope you understand that Bitcoin itself can provide for the whole world when it comes to a new currency. But there are already a lot of other currencies, and banks have started thinking about creating their own digital currencies. Nowadays used quickly, making international transactions can be a pain. Instead of taking a few seconds like Bitcoin and other cryptocurrencies, it can take 3-5 business days. Besides taking too much time to transfer money, it may also not be available to individual countries, let alone commissions.

Making payments on some cryptocurrencies that use Blockchain as their platform is not only extremely fast, but has very cheap costs, if any. Plus, anyone can own a Bitcoin wallet online. When you go to the bank to open a new bank account, you must meet all the criteria that the banks request.

It may be so, that you must have a legal address, you must be 18 years old, you must get proof from your employer stating your occupation as well as your salary and so on. Instead of all these headaches, if you have a smartphone, you can open a Bitcoin account without any of the aforementioned criteria.

Then, in a matter of seconds, you can start making even international transactions. The current issue is that if I want to buy something from you, I have to make a transfer from my bank through PayPal, to your bank, which will eventually pay you. It takes at least one other called a trusted third party to make a payment. But, Blockchain will verify this deal for us. Therefore, we will not need banks or any other trusted third party. All it takes is a few minutes of internet access.

You have to understand that there are currently 1.7 billion people who do not have a bank account, for various reasons. They may not be competent enough; They may not even have the right clothes to go into the bank. They will just choose not to have a bank account, but mostly, so many people just live too far from any bank. So they decided not to have one. Maybe they have internet access here and there, so a blockchain can just as well become their bank, right? Why not?

It will be very beneficial to them, and it is already happening with a lot of people. What the banks have realized is that it might be a good idea to create their own cryptocurrencies, so in case a blockchain takes over the world, at least they are ready for the big boom.


Chapter 11:

Introduction to Blockchain Features

Blockchain is a new technology, but once you examine it closely, you will realize that the components exist in advance, and all that was needed was to stack them together. Some inventors are offended once a new and better idea takes over, especially if it is even cheaper, faster or often free of charge;

But it's part of the innovation we've always experienced. When it comes to technology and you invent something today, it is almost certain that once it is on the market, there is a significant amount of people who are already trying to copy or do it better - what is the service or software. Therefore, innovation is inevitable.

This is equally true when you look at physical storage for storing data, such as music, video or software. What has happened over the years is this: the less space required the greater the quality became; In fact, most of the data, movies, and music are now streamed from a number of sources; Therefore, the idea that money will flow one day should not come as a surprise. I still remember when I bought VHS and DVD, both tapes and CDs.

Also, remember when there were no cell phones? Then, once they got to market, I was able to make phone calls and send text messages from almost anywhere, or even play a game called snake. After the internet came in, I always wanted to go home so I could access the network, or I had to call someone to check the weather forecast or other useful information when needed.

Although, less than two decades later, I can store hundreds of movies and music albums on my mobile phone, as well as being able to Skype, video calls and access any web page from anywhere in the world.

As you can see, no one can predict what will happen with the technology over time. Blockchain is the place where the internet came back in the mid-90s. The internet seemed like a nerdy idea, and most people thought it was all about email. As nowadays, there are people who believe that blockchain is all about bitcoin.

The reality is that email may have been slow, and people were not interested in it; and yet, in a few years most companies have moved to the web and of course they have succeeded even more and the main tool for internal and external communication within the infrastructure is e-mail. About them and we will understand about them a little more.


Chapter 12:

Peer-to-peer network

To maintain the operation of the blockchain, a network residing on the Internet is required. Moreover, within the network there are certain exchanges for updates. These updates are required to regularly update the distributed accounting system with the last block.

If you turn on your computer and start running the Blockchain protocol on it, it will become part of the Blockchain network. Next, I would do the same thing with my computer, and then my machine would become part of the network. Every single device that is connected to the Internet, and runs Blockchain, becomes part of the network.

This way all these devices can communicate with each other through the internet and keep updating each other. Because there is no main junction or central machine whose purpose is different from Sharm, this network is called a peer-to-peer network.

Peer-to-peer networks have been around for a long time. Therefore, there is nothing new in it. However, since it does not have a main node of any kind, it is not a central network, but a distributed P2P network.

This is very important, as it tells you that there is no boss of any kind; Therefore, it reduces the possibility that one or more nodes in the network will be able to operate the other nodes. Manipulation of any kind is simply impossible, and that, in itself, is proof that we can trust the system.

The network itself is based solely on technology that has existed in the past; This time, however, he has a different purpose. What you need to understand is that when it comes to peer-to-peer networking, there is no central server or central client.

Traditional centralized networks have the primary server, or central servers, and multiple clients; And the way they are connected is that the servers always dictate what the customers can get. In contrast, peer-to-peer networks are completely different, since all nodes in the network serve both purposes, all serving as well as customers.

That is, no single machine has a greater decision-making power than any of the same network.

Therefore, P2P networks always work together, make decisions together and distribute them equally to all nodes in the network. Another problem with centralized networks is that if one node is willing to share the latest news with the rest of the network, it will first have to send traffic to the main node or server, which can do many things.

The server can manipulate the traffic before moving to another node. Traffic management will be easy at the server node, because once the server receives the traffic from client A, the server will not send the same traffic back to client A (because that was the source in the first place). Instead, the server would send the traffic to the other clients, but if this trade is already handled, neither the other nodes or client A will ever detect it.

Another issue will be even if the server decides to send the traffic only to a certain group of clients, instead of everyone. Again, this could reduce the power of a peer-to-peer network, and in the case of a blockchain, it would not be an advantage.

The worst that could happen on this central network: Once the server receives traffic for the call, data on the last approved block, imagine that the server decides not to share this data with any other client.

This will simply put the blockchain out of business. Therefore, the only way the system will work is to use a distributed P2P network. If you are wondering how the server will make such a decision on its own, well, no.

Although managing a server, or a small group of servers, may be simple for the person; When it comes to P2P networking, a person with bad intentions, like hacking targets, or traffic manipulations, will have a hard time doing so and the reason is simple. Managing a large set of machines manually housed all over the internet is almost impossible.

This is why if you want to start a company and you want to be the boss, you will create a traditional centralized network by having a main node that you can manage whenever you want. Again, P2P networks have no boss. Therefore, there is no one to blame, and every machine on the network bears the same responsibility. In any system, concentrated or not, there is always some delay. This is called latency.

Until one device gets to the other device, it's just never the same amount of time. Technically, latency is the time defined as the data passes between the source and its final destination.

This is something you might consider realizing that data proliferation can take some time, especially when there are thousands of nodes in a distributed system. Let's look at an example of better understanding. Imagine that A junction is Are willing to share its latest blockchain with junctions B, C and D. P2P networks are also known as dumb networks, because they have no idea what kind of data they are transmitting;

All they know is that once there is data that needs to be transmitted to the network, they will make a transmission and make sure that all the nodes get the same data. So, let's go back to our example of four nodes and their data distribution. Imagine that junction A is in Los Angeles, USA; junction B is in Sydney, Australia; junction C is in Cape Town, South Africa; junction D is in London, UK.

Everyone will get the same data; however, some junctions may have the data Earlier than the other nodes. Therefore, the order of transactions may differ between the nodes. In conclusion, peer-to-peer networks are beneficial for the following reasons:

  • Reduce overhead by not sharing data at multiple nodes instead of keeping everything in one central location.
  • Reducing the risk of data falsification and manipulation.
  • Reducing third-party disruptions, so every smart contract deal has fewer fees as well as faster implementation.

Post a Comment

0 Comments