Blockchain and Bitcoin - Buzzwords of the decade.
A blockchain is a distributed, public database. The blockchain is first and foremost a database, that means a piece of software in which data is stored. It starts with the "creation block", all other blocks are first checked and then appended chronologically at the end. In the context of Bitcoin, this database is used to manage monetary transactions.
The concept was thought up by a genius with the pseudonym Satoshi Nakamoto for the virtual currency Bitcoin. Satoshi thought of something like a shared and public ledger for all users. Something like a giant Excel spreadsheet, but where you can only add new entries and not delete or change older ones.
This is something that will change the world permanently. It is not stored on any servers, but each user has his own and complete copy. Secondly, the blockchain is tamper-proof: each new block is linked to the previous block and contains its history in the form of its checksum. In addition, each block also contains the cheksum of the entire chain. This means that the sequence of the blocks is unique. Third, all data is stored in encrypted form. Together, this prevents corruption and tampering. The entire network legitimizes each other.
What can you do with blockchain? Transactions or information stored in a blockchain are, in principle, genuine and unchangeable and therefore no longer need anyone to manage or certify them. Blockchain makes business models possible without middlemen, for example securities trading without banks or house purchases without a notary. Smart contracts with programmed rules and functions replace conventional paper contracts, and gamers, streamers and other artists could exploit their digital rights in a differentiated manner. The fundamental goal is to focus on the people involved and to enable peer-to-peer communication between them.
We can most often speak of two different systems. One is the Proof of Work which relates to Bitcoin and Proof of stake which is recently connected with Ethereum. Bitcoin is based on the Proof of Work system. Here, all computers get a calculation task for each requested transaction. The one that can solve the task the fastest submits it to the system, after which all other computers must verify the solution. The computer that solves the problem is awarded it is allowed to append the transaction to the blockchain and extend it. With Proof-of-Stake, it is no longer the fastest computer that counts, but who owns the most of the currency that is being traded. The people with the most shares are then drawn by lot to determine who gets to validate the transactions, and the person then receives a reward in the form of transaction fees. Since far fewer computers need to participate here, cryptocurrencies on this basis are very energy efficient.
At Onyx, we have accepted and embraced blockchain as part of the future and hope it spreads like wildfire throughout the world and every sector of the industry.