Blockchain principles

Blockchain is based on 4 main principles:
1) The principle of decentralization:
All those actions that we perform in life:
purchasing an apartment, car, admission to a university, medical examination – all this contains documentary evidence and is stored in a specific database on the servers of public institutions or private organizations. If you wish, this information can be accessed and corrected.
The development of the blockchain technology is designed for secure data storage, which is why all blocks of information are distributed in millions of user computers. In the event that at least one of them fails, the information will remain saved. Talking about the simultaneous failure of even a few hundred devices does not make sense – if they are on opposite sides of the earth, then no hacker attacks will lead to a group failure. In the event that this mythical event occurs, the blockchain system will work until such time as at least one computer is connected to it.
[The blockchain technology specifically changes this approach. Its essence lies in the fact that the database is not stored in one place, but distributed over thousands, and even tens of thousands, and sometimes millions of computers scattered around the world.]
2) Safety principle
In addition to the decentralized location of the system, it has a powerful encryption algorithm, which involves a digital signature and a hash function. Digital signature includes two types of key – open and closed. The public key is used to verify this signature, and the second – the secret – is relevant in its development. It is thanks to these keys; users can access personal information.
The hash function is responsible for storing data and protecting it from unwanted interference.
[As we see, the base of the network’s work is not built on users ’fictional trust in each other, but on rigid mathematical calculations.]
3) The principle of transparency
Since the blockchain database is located in the public domain, each user can view the information. At the same time, he will notice the ongoing operation (for example, a money transfers), but its details will be known only to participants of a particular exchange. If these participants wish to make public the transfer of funds, then everyone can follow the transaction.
[Thus, the general information about the ongoing transactions is not closed, but is always available to the public.]
4) The principle of direct interaction
The key task of the blockchain is to bypass intermediaries while maintaining the reliability of information transfer. In ordinary life, we always have to seek help from notaries, in order to certify papers, to banks, in order to carry out monetary transactions. And here we meet with real risks. When working with banks, situations often occur when financial institutions “wrap up” transactions, since they are considered suspicious. Cases where forged documents are not rare. And it turns out that we often have to seek help from those whose trust has already been undermined, and more than once.
[Blockchain allows you to exchange data with users without the help of intermediaries. At the same time, the authenticity of the entire workflow is confirmed by the participants of the entire system.]

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