Top 5 Countries Embracing the Blockchain Technology

The Definition of Blockchain Technology

For a start, it will be useful to clarify what is blockchain technology. The blockchain is the basis for the cryptocurrency. The very name of the technology explains what its essence is. The blockchain is a chain of blocks. Blocks, by themselves, consist of data on transactions, contracts within the system, which are presented in a cryptographic form. To write a new block, that is, a new transaction, you must perform a sequential reading of information about the old blocks. Hence, the need for high computing power required to maintain the network. Thanks to intensive leaps of the bitcoin course in 2017, many Internet users are already more or less familiar with such terms as cryptocurrency, blockchain and ICO. Initially, the term blockchain appeared as the name of a distributed database (DDB). This was implemented in the Bitcoin system. In 2008, Bitcoin was created as the first blockchain app. Nevertheless, it is worthwhile to understand that the blockchain technology can be used in any systems with interconnected information blocks.

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Simple Explanation of the Blockchain Technology

Blockchain is a chain of blocks that cannot be modified and which contains one or other information. But this is a crude technical example. A good explanation is described in ‘The Age of Cryptocurrency’, by Paul Vigna, and Michael J. Casey. Imagine an island. People live on this island. Assume that the number of people is 100. It does not matter how 100 people got to the island, the main thing is that they are already there. Among them there are doctors, artisans, tailors, carpenters, hunters, cooks and other people with useful skills. For a fair assessment of each other's work, these 100 islanders decided to use the stones for cash settlement among themselves. The larger the stone, the more it costs. Once, the group decided to simplify the procedure for the turnover of stones. So that you people do not have to carry a pile of stones every day, and somehow transfer them among each other. And then, one day a group of people decided to write down in the register how many stones each of 100 people have. Then they put all their stones in one big cave. Every evening they talked and, at the same time, exchanged the information concerning the number of stones they passed on to each other. It turns out that on an island there was no intermediary who would record the transferred money and was engaged in it all the time. The absence of an intermediary saves the physical and material resources of inhabitants. So, everyone is busy with an important task for the group survival, and, at the same time, live in a certain harmony. The same thing is blockchain. Roughly speaking, this is a decentralized register and everyone in the world knows how much money on each wallet but does not know to whom this purse belongs. This arouses great interest among enthusiasts, private companies and even states. The development of blockchain applications is of interest to many developers, leaders of different states, and amateurs.