Understand the Future Development of Digital Assets and Blockchain Technology

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Over time, more and more technology companies have begun to engage in the field of digital assets + blockchain, and the entire industry chain has rapidly improved, similar to the Internet development boom of the year. We are experiencing a development from blockchain 1.0 to blockchain 3.0. More and more digital asset blockchain applications are born and serve the financial, logistics, credit, assets, and culture.

Learn about digital assets

Digital assets are alternative currencies in the form of electronic money. Early digital assets (digital gold currency) were a form of electronic money named after the weight of gold. Current digital assets, such as Bitcoin and Litecoin, rely on checksum encryption technology to create, distribute, and circulate electronic money. It is characterized by the use of P2P peer-to-peer networking technology to issue, manage, and distribute currency, avoiding the issuance and approval of government agencies.

The main representatives are Bitcoin and Ethereum. Bitcoin is the first distributed ledger architecture successfully deployed through the blockchain. Since its inception, many other projects have replicated this technology and have achieved varying degrees of success. Ethereum features a robust operating environment, while the Bitcoin blockchain wins with its simplicity.

Learn about blockchain technology

In short, blockchains are distributed ledgers that are linked together in chronological order to form a transaction. Each of these blocks contains data related to the most recent transaction and has a hash for the reference to the previous block. It can be said that the hash reference can establish links between different blocks of the chain. Since no entity owns the entire blockchain, no one can break it. The advantage in this area is that it brings a mysterious charm to the blockchain ledger — it also democratizes it. Although the technology can quickly process transactions and store consequences data, it does not rely on any type of governance or regulation of the central authority.

These key components of the blockchain help clarify why this is so important and how to shift from the world of data that tends to be centrally controlled and controlled:

Cryptography — The recording and storage of transactions through cryptography, which allows different participants and participants to trade without the need for external parties to provide any supervision.

Decentralization — There is no manipulation space in the blockchain because each transaction is completely decentralized and time-stamped. Thus, no single entity or regulator can control blockchain transactions.

Consensus — Blockchain follows different consensus mechanisms to facilitate the uninterrupted flow of transactions. The chain can only branch out after reaching agreement or agreement between different nodes.

P2P Network — Blockchain is a typical P2P network that handles responsibility and data sharing among all computers.

Distributed ledger — basically an asset database, distributed ledgers can be shared, can be maintained in an encrypted manner, and can be protected from unauthorized changes.

The digital asset blockchain technology should be applied to more realistic scenarios. The digital asset blockchain technology needs to be combined with the real economy industry to reduce transactional reconciliations, records, and other supporting work by reducing intermediate links and intermediate links in transactions. In order to reduce costs for the real economy, we must give full play to its due value.

Author: Marko Vidrih @cryptomarks

Image via Pixabay

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