Collect and update this information so-called miners - active users, who for their work receive
cyber-currency fees Bitcoin.
Blockchain data can not be faked
Every day there are news that some hacker has stolen money from bank accounts or cracked a
celebrity email. This is because information is easy to access. And Blockchain makes the theft of
information impossible. If the hacker inserts a fake between existing blocks, the system will notice
the substitution - the code for the new block will be different from the sequence of the others.
Changes in the blocks themselves also affect the code, and thus any changes are immediately
noticed by the miners. Overwrite the entire chain will not work, because Blockchain is a
distributed database, and information is stored simultaneously on thousands of computers. Even
if information changes on one, other users will notice a substitution - they have some original
data stored.
The protection of information is especially important for banks: in the format of figures in the
cells of databases they store money. If an attacker changes this information, he can steal money
from accounts or disrupt the bank's work.
New technology will allow you to transfer money without intermediaries
When the seller and the buyer plan to make a deal, they are looking for an intermediary who
follows the integrity of the agreement. In financial transactions, the intermediary is the bank: it
guarantees that the money will not go anywhere and will reach from the payer to the recipient.
Also, the bank issues a confirmation of payment - it does not matter whether it is about paying a
gas bill or buying a factory. For this, financial institutions record transaction information in their
databases. We use their services, because this is the most reliable variant of mediation.
But the technology of data storage Blockchain allows you to do without intermediaries. Imagine,
you want to pay for the goods from the online store and make a transfer through Blockchain. In
your data chain there will be an entry that the money is listed to the store - then you have
confirmation. Money transfer is "seen" by all network members, and it will be reflected in the
update of your data. In the process of transfer it is impossible to steal money or erase a record,
because the system is immune to hacking. The store also knows that the translation is real,
because if you had forged a data block, the system would have noticed it and deleted the
fictitious entry. Everything is the same as in the bank, but you do not need to pay an
intermediary for services. With this approach, banks are not needed, and given the increasing
popularity of Internet commerce, Blockchain is able to compete with traditional payment
systems.