Blockchain technology is the cryptocurrencies’ world main concept, and it is very important to know what it exactly is. Originally, this term was given to a distributed database in the Bitcoin system; and then it became the base of this cryptocurrency, performing the registry function of all operations. The blocks store cryptographic data about transactions. Each block contains a timestamp and a link to the previous block; all blocks form a sequential and continuous chain.
To record a new block, system reads old blocks information, so the data accumulates and forms a complementary base, whose information that cannot be removed or replaced. This database is formed autonomously, without a centralized server. Multiple computers process copies of block chains and store it independently of each other. Encryption ensures that these copies will be synchronized between all users directly conducting operations.
Multiple copying guarantees absolute transactions transparency and provides a high level of deals openness. Information in the blockchain is open, so anyone can see the history and size of the transaction. However, the information identifying the users is keeping private. Access to the blockchain is available only with using reliable keys, which are presented as a set of crypto-records. These keys are unique and cannot be replaced or hacked.
Miners and other participants, referred to as nodes, provide the security and functionality of the blockchain. Among them also exists such a concept as full node – it is user of full-fledged wallet storing on his computer the full version of the blockchain. The volume of full blockchain version regularly grows and in 2017, it weighed more than 100 GB. The more active full nodes are located in the network, the faster the transaction information is processed. To write new data to the blockchain, a consensus of nodes allowing filtering transactions, recording only legitimate ones is necessary.
All blockchain participants have equal rights, and each one of them is acting as a guarantor Thanks to decentralization, all users are independent and do not need any intermediaries and regulative services. With the help of the blockchain, people from all over the world can perform data transfers and transactions, despite the differing jurisdictions of their countries.