Understanding the Blockchain Apprehension Through Bitcoins Middle Tier Knowledge – The Coin Republic

Steve Anderrson Sunday, 12 January 2020, 12:59 EST Modified date: Sunday, 12 January 2020, 13:00 EST

Blockchain Technology quite famous in the areas where entertainment is involved since the propaganda is often used instead of theory. Another reason for it can be because everyone is used to the causal routine in cognition.

As it goes with the people, they tend to see the effect first, and then look at the cause. This method may be generally useful, but it is not always practical since it ignores the middle layer.

An easy way to explain this is to give the example of Huawei company. The standard effect of Huawei is high innovation and high profit.This is a fallacy since this cause and effect ignores Huaweis important middle tier.

Huawei had spent ten years, smashing billions of dollars, finally completing it with the support of IBM.As of the year 2019, many companies are preparing for the digital transformation in the next five years. Therefore, Huawei has achieved high-quality implementation for more than a decade ago.

Presently, for Baidu, we can notice that the blockchain has four elements: distributed data storage, point-to-point transmission, consensus mechanism, and lastly, encryption algorithm. However, these four elements are not the truth of the blockchain and only the four characteristics of the blockchain. The blockchain has its own middle layer.

Satoshi Nakamoto what the first one to create a decentralized experimental financial system successfully. It was operating on the Internet-Bitcoin, which considered as the origin of todays generalized blockchain.

Satoshi Nakamoto just focused on how to build a secure and reliable Internet. He had no idea that time that it will emerge as the basic tenet of blockchain teaching.His skilled application of cryptography and encryption algorithms considered to be one of the most admirable geniuses in the Bitcoin system.

The asymmetric encryption algorithm invented in 1976. After continuous optimization and evolution, it now considered being the most secure encryption algorithm for human beings.

Post the emergence of asymmetric encryption algorithms. They have widely used in security authentication as well as information transmission encryption.

Theoretically, the practice of secure operation of the Bitcoin system for so many years also proves the security and effectiveness it provides. Two users can freely and securely transfer large amounts of money.

Concluding it, the actual Bitcoin transaction is a bit more complicated, which is mainly due to the symmetric encryption conversion between public key and wallet address.

In fact, in the bitcoin world, private keys are essential. If you lose them, you really can not find them. It has estimated that the number of Bitcoins that cannot recovered due to the loss of the private key is more than 20%.

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Understanding the Blockchain Apprehension Through Bitcoins Middle Tier Knowledge - The Coin Republic