Truth will set you free, but we need to know the truth
Blockchain is a simple network protocol to tranfer files (information, data) and it is decentralized, becasue is based on “a virtual server” it means that there isn’t an authority controlling blockcahin.
It works like The File Transfer Protocol (FTP) which is a standard network protocol used for the transfer of computer files between a client and server on a computer network, or to give you another example, the SMTP we use every day to send our e-mails, SMTP stands for Simple Mail Transfer Protocol, the procedure behind the email flow on the internet.
Simple as that, but on blockchain “the process” to transfer files from one user to another is slightly different.
First of all we have to mention the fact that #blockchain is “virtual” it means that there isn’t a “physical” server, see Google quantum computer for example, in this “virtual environment” all information transferred are encrypted, more over, it’s called blockchain because is built like a chain in order to work, and it has another important feature, it cannot be manipulated.
A bit of history
Satoshi Nakamoto inventor of BTC, was one of the first miner to mine bitcoin, invented this transfer protocol network to move digital money from one user to another, he or the group of hackers behind him, created blockchain to transfer digital currencies only, the main reason behind this choice, was to allow user to wire-transfer huge quantity of money without using bank nor government, but simply as sending an e-maiil, with a very low cost and with a very reliable kind of security to avoid “scam” or manipulation of the market by third part.
This idea was born after the big financial crisis from 2008, Mr. Satoshi Nakamoto, was interested in creating a platform where transactions from users, could not be controlled or manipulated by third part (bank, government)
To do that, they invented a “virtual computer” where information where stored in individual blocks, and once these blocks where filled with the relative information, the same block will be closed to allow the construction of a second block.
The two blocks coexist for a simple reason, the information stored in one of the two blocks cannot be changed by anyone, in fact, without the information written on the first block it’s impossible to build the second one and without the information written on the second block we cannot built the third one and so on.. #blockchain is an immutable record of transactions that do not require to rely on an external authority.
This is the reason why #Bitcoin was able to reach 20.000 euro value, more over, we have to understand that in order to transfer money from one wallet to another I have to “buy” these digital-money, Bitcoin, Ethereum, Dash, Monero etc… so the “price” of a single bitcoin is calculated on two factors, the request of bitcoin from the market —linked to a limited quantity of bitcoin produced — and the total amount of transactions on blockchain in bitcoin.
This process gives the Bitcoin its volatility which can change from one day to another, but the value of a single Bitcoin is more real and more reliable then the value of ONE SINGLE EURO, beside the fact that the value of the Euro is determined by the European Central Bank, which has the objective of devaluing it by 2% a year, the value of the bitcoin depends, beyond the market demand, also by the amount of money (Dollars, Euro, etc) used to “buy” bitcoins.
Wath is the difference from our economical system and blockchain?
When you read “blockchain and bitcoins are bubbles….” It’s a lie, if there is one big huge bubble, this is our economical system, based on non-equity, scam and corruption, but most of all, in our economical system there is the human intervention involved in the process of devaluation/increase of price for a chosen currency. That’s why Bitcoin reached 20.000 without government or bank intervention and the dollar is still there after 300 years.
Such a “scam” cannot be achieved with crypto-currency, because there is no “human-control” behind the digital currencies. Same as well for elections based on Ethereum platform for example. After these “practical” explanation about blockchain and bitcoin, once we understood that this system has been invented to destroy the “bank-supremacy” once we are aware of these facts, why the hell on earth we still go to BANKS to buy Bitcoins ?????
The revolution is called Blockchain
Blockchain can really change our world, we can move from a corrupted system to a clean environment, in order to do it we need to change our habits, then we can move forward.
First step, start to study and understand this new technology and see how can we detract power, fuel (in this case we talk about money) from our obsolete and corrupted economical system to slowly move on a new clear honest one.
Remember if we change our “money” in cryptocurrency the “loan-sharks” will have no power to move forward, without gasoline no cars are running and without physical money there is no corruption, clear and simple as it is. Have a nice day.