What is Blockchain technology and why it’s so important? (Part III)

What is Blockchain technology and why it’s so important? (Part III)

In the last part of this article, I'll be describing the different ways to use of Blockchain. The most important one is that it can be applied to every type of finances.

One way to use it is with remittances. By implementing this technology, people can save in exchange rates and taxes. Not for nothing banks have been trying to use this technology, but in a centralized way, creating their own digital currency: Ripple.

Every cryptocurrency has its own “spin”. Ethereum, for example, doesn’t increase the difficulty level of the block. When the Ether mining was unlimited, its price remained constant. However, once its creator decided to copy Bitcoin and stablish a finite amount of Ehtereum, its price skyrocketed.

In the case of Bitcoin, you can see the history and the digital wallets that every currency has been to. But you can´t see who made the transaction, since only the wallet number is registered, but not the IP address. That’s why the transactions can’t be traced. Monero, on the other side, is focused on privacy, and you can’t see the record although the program does have it written, just like every other Blockchain.

A digital coin emerged recently as a proposal not to waste the electricity used in solving problems with Blockchain technology: Golem, which allows you to buy or sell computational resources. According to Black Wall Street Mexico, to mine around $80 to $100 USD, you require a network of about 80 computers with a good processor, a good graphics card and keep them only mining for around a month.

Broadly speaking, what Golem does is create a supercomputer (Peer-to-peer “P2P”, by joining the processing power of all the mining computers) because it won´t send a harmless problem, like Bitcoin does. Golem aims at doing modelling, like atomic explosions or calculating planet trajectories, to name a couple of examples.

When radiotelescopes download too much information and there isn’t a big enough computer available to process the information, these telescopes can upload the problem to Golem and the mining computers help to resolve that model.

That’s why so many cryptocurrencies have emerged, like DentaCoin, which is used for paying dentists, or PotCoin, used for paying (anonymously) legal marijuana transactions in the United States. In Las Vegas, a strip club even accepts the cryptocurrency TiltCoin, which is used to buy stuff R-rated websites. But also, this has unleashed the creation of bogus cryptocurrencies. However, what remains essential is the Blockchain.

Blockchain technology has the capacity to change the world. Bitcoin and the Blockchain offer a chance to build such a complex system as it may be required, even more than the current financial one, only not based on the dollar or any other currency, but on a decentralized asset. From there, Blockchain can do everything that is done with money: payments systems, deliveries, microcredit, mortgages, buy a car or financing to start a business.

It is all about changing the paradigm, create a new currency, but one that isn't controlled by no financial institution of any country.

Blockchain technology and Bitcoin are the most successful anarchist experiment since the Spanish Civil War, the Paris Commune or so many other revolutions. They are one of the realizations of the anarchist ideology: Returning the power to the people. The only “discrimination” it does, is that you must have a computer. It is in its own progressive nature: it’s decentralized, anonymous, and at the same time, unforgeable and impossible to hack.


By Antonio Menéndez

Source: Hipertextual


  • Antonio Menéndez

    Antonio Menéndez

    Técnico en Sistemas Computacionales, con más de 20 años de experiencia en soporte técnico presencial y a distancia. HP Technical Support Certificate A+, DELL Technical Support Certificate EMC, NEXXT Solutions Certificación en Cableado Estructurado. Amplia experiencia en Administración de Servidores.

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