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0478: Section 5 Internet and Uses 5.2

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0478: Section 5 Internet and Uses 5.2

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5.2 - DIGITAL CURRENCY

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Jonathan Dunsby
Jonathan Dunsby
Singapur

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0478: Section 5 Internet and Uses 5.2
 

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0478: Section 5 Internet and Uses 5.2Versión en línea

5.2 - DIGITAL CURRENCY

por Jonathan Dunsby
1

Digital currency exists purely in a format . It has no form unlike conventional fiat currency ( for example , $ , , ? , and ¥ ) .

2

Digital currency is an accepted form of to pay for goods or services . As with cash or credit / debit cards , digital currency can be between various when carrying out transactions . It has made it possible to online .

3

The problem with centralisation is maintaining and security ; these have always been with digital currency systems . However , one example of digital currency , known as , has essentially overcome these issues by introducing :

4

» Cryptocurrency uses cryptography to transactions ; it was created to address the problems associated with the centralisation of currency .
» Traditional digital currencies are by central banks and governments ( in much the same way as fiat currencies ) . This means all transactions and exchange rates are determined by these two bodies . Cryptocurrency has no state and all the rules are set by the cryptocurrency itself .

5

» Unlike existing digital currencies , cryptocurrency transactions are available and therefore all transactions can be and the amount of money in the system is .
» The cryptocurrency system works by being within a network which means it is much more .

6

Blockchain is a decentralised . All the transactions of networked members are on this database . Essentially , the blockchain consists of a number of computers but they are not connected to a central server . All transaction data is stored on all in the blockchain network .

7

Whenever a new takes place , all the computers get a of the transaction ; therefore it cannot be without the of all the network members . This effectively removes the risk of security issues such as .

8

is used in many areas , such as :
» ( digital currency ) exchanges
» smart
» research ( particularly within pharmaceutical companies )
» politics
» education .

9

Whenever a new transaction takes place , a new is created :

A new hash is created each a new block is created . This hash value is unique to each block and includes a , which identifies when an event actually takes .

10

Blocks are . Block ? 1 ? is known as the genesis block since it doesn ? t point to any block .

If block ? 2 ? is changed in some way . Any to the data within block ? 2 ? will cause the of the hash to change ( it will no longer have the value 6AB1 ) . This means
that block ? 3 ? and beyond will now be since the chain was between block ? 2 ? and ? 3 ?

This will prevent tampering from someone such as a .

11

Is possible to quickly create a whole new string of , and therefore recreate a new before the problem has been discovered ? This is by proof - of - work , which makes sure it takes ten minutes to determine the proof - of - work for each block before it can be to the chain .

12

'Proof of is ? policed ? by miners , which are special users that get a commission for each block created . Thus , the whole process of creating new blocks is down which foils hackers and also means that the currency is regulated by all the network computers .

13

Proof of Work makes it almost to hack into the since it would be necessary to attack every single in the chain at the same time . It only takes one block to the link for any transaction to be .

 
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