Tokens & Coinbases: For a practical example, let’s see how cryptocurrency (Bitcoin) works with blockchain. When A wants to send money to B, a block is created to represent that transaction. This new change is broadcast to all the peers in the network, and if approved by the peers, the new block is added to the chain, completing the transaction. The popularity and the controversy surrounding Bitcoin skewed the general perception of blockchain as a technology limited to cryptocurrency application.
The good news: No advanced math or computation is involved. You may have heard that miners are solving difficult mathematical problems--that's not true at all. What they're actually doing is trying to be the first miner to come up with a 64-digit hexadecimal number (a "hash") that is less than or equal to the target hash. It's basically guess work.
There are many Blockchain projects which aim to do this. Bear in mind, however, that there is often not enough storage within Blockchains themselves, but there are decentralized cloud storage solutions available, such as Storj, Sia, Ethereum Swarm and so on. From the user’s perspective they work just like any other cloud storage. The difference is that the content is hosted on various anonymous users’ computers, instead of data centers.
A Bitcoin banking like model. Here you place your Bitcoins as a deposit with a site that pays you a fixed interest rate on these deposits. As everything here, this method has advantages and disadvantages. The good thing is, that you don't need to diversify your Bitcoins over many borrowers. You just place your Bitcoins with your Bitcoin bank and that's it. You earn Bitcoins as a steady stream of interest income. However, be very careful. In the previous case of peer to peer lending you diversify your lending activity over many borrowers. In the banking model you trust one single borrower which is the bank. If they don't do a good job in managing your Bitcoins, everything can be lost at once. That's because the bank takes you deposits and invests them in assets, the most important assets usually being loans. If they do a good job you are fine because you simply collect the interest payment. If they don't do a good job you take the hit. An there is no deposit insurance in the Bitcoin world, too.
Blockchain is the underlying technology for digital currency like Bitcoin, Litecoin, and Ethereum and other digital properties. The technology records every transaction of a digital currency or property in a database or digital ledger. It also copies and distributes the database to a network of computers to validate each transaction. This decentralizes, secures, and publicizes each digital currency’s or property’s database of transactions.
Mycelia uses the blockchain to create a peer-to-peer music distribution system. Founded by the UK singer-songwriter Imogen Heap, Mycelia enables musicians to sell songs directly to audiences, as well as license samples to producers and divvy up royalties to songwriters and musicians — all of these functions being automated by smart contracts. The capacity of blockchains to issue payments in fractional cryptocurrency amounts (micropayments) suggests this use case for the blockchain has a strong chance of success.
Let’s go back to the part where John’s blockchain copy was sent around town. In reality, everybody else wasn’t just adding his new block of data…. They were verifying it. If his transaction had said, “John bought Lemonade from Rishi, $500,” then somebody else would have (automatically!) flagged that transaction. Maybe Rishi isn’t an accredited lemonade salesperson in town, or everybody knows that that price is way too high for a single lemonade. Either way, John’s copy of the blockchain ledger isn’t accepted by everyone, because it doesn’t sync up with the rules of their blockchain network.
Mining is a record-keeping service done through the use of computer processing power.[e] Miners keep the blockchain consistent, complete, and unalterable by repeatedly grouping newly broadcast transactions into a block, which is then broadcast to the network and verified by recipient nodes. Each block contains a SHA-256 cryptographic hash of the previous block, thus linking it to the previous block and giving the blockchain its name.:ch. 7
See investing is one thing and living in India does offer ways to invest in Bitcoins through coinsecure but it’s price volatility and the way it is rising does ring alarm bells as it can go down by huge margins any time. What kind of an opinion you have on regulation of Bitcoins in India ? What kind of a future you see for Bitcoins in India especially after being a part of the Blockchain Summits?
* In a supply chain auditing blockchain application (https://blockgeeks.com/guides/what-is-blockchain-technology/), it’s said “a Provenance pilot project ensures that fish sold in Sushi restaurants in Japan has been sustainably harvested by its suppliers in Indonesia”. I am wondering how this can be done. How can blockchain validate the origin of the fish? Or an ethical diamond? There is no reliable IDs on the fish or the diamonds.