Home About News Affiliates Bounty Faq Contact Account
Exchange rates
BTC/USD
17,883.29
Exchange rates
BTC/JPY
1,860,238.47
Exchange rates
BTC/EUR
14,969.85
Exchange rates
BTC/GBP
13,439.51
Exchange rates
BTC/RUB
1,360,539.47
Latest Payments
Si**
0.00537
Latest Payments
Kla**
0.00537
Latest Payments
RichMonkey.b**
0.00150
Latest Payments
Mkhaben20**
0.00159
Latest Payments
Robot20**
0.00100
All payments
<
EN RU PT DE ID VN HI
>

News
20.10.2020
Blockchain explained

Investing in blockchain

If you have read about our investment activities ABOUT-WHERE WE INVEST, you are aware that one of our fields of investment is venture capital, with a strict deviation to start-ups that utilize the blockchain technology. This is because of our expertise in blockchain, but more importantly it is because we believe that this is a technological novelty with the potential to evolve many industries. In this article we will explain what blockcahin is and why it is so valuable in a condensed manner.

Basically, blockchain is a solution for storing information such as financial records in an immutable, secure, public and decentralized way. It was invented to function as the basis for Bitcoin and it is the fundamental system behind most cryptocurrencies, since a currency without a central governing authority can exist only with an alternative method for keeping transaction information that is secure and unmodifiable, and therefore reliable.

How blockchain Works

Blockchain is the information about an array of different transactions that is stored in blocks that are themselves chained together in a sequence, or a chain. Hence the name "Blockchain".

To ensure that this record cannot be tampered with, every block needs to verified with a complex code, known as hash. This hash is produced through the solving of mathematical problems. Each hash is produced using the hash of a previous transaction as a key, effectively linking the blocks together. This creates continuity through the blockchain, making it effectively impossible to falsify a single record without having to change every single entry in the chain of transactions.

Benefits of blockchain

Since there is no way to change a single record without the need to change all records in a chain, the hash ensures the security and legitimacy of each transaction, due to the ledger not being stored in a central location, but rather being distributed across many different servers globally.

Transparency is also a benefit of blockchain, with all transactions being visible and verifiable instantly online. Moreover, international transactions on the blockchain are faster and cheaper than for conventional methods. For regular currencies transfers can take up to five days, since payment instructions are not instantly transfered, and the chain of command can become even more convoluted with intermediary banks that add not only time, but cost to a transfer.

Blockchain beyond currencies

Since its creation, the technology of blockchain has been noticed for its potential by a large amount of companies and put to many different uses, like simplifying medical records while decreasing upkeep costs, optimizing supply chains and even making absentee voting secure.

The blockchain is potentially one of the most influential new developments of the 21st century with its potential yet to be fully realized. That, in short, is why we here at Bitero support and invest in companies that try to find new ways to utilize this trailblazer of a technological advancement.

View all news