News about virtual currencies, such as the turmoil and speculative movements of investors, continues to sway newspapers and magazines. On the other hand, it may be the case that the general public has not yet caught up with the basic technology of blockchain.
Associate professor Hitoshi Okada of the National Institute of Informatics says that the reaction of many people seems to see the early days of the Internet while having the potential as a platform that dramatically changes society, the condition as a currency of virtual currency, blockchain I asked about the possibility of economy.
Blockchain is a natural audit system
There are some who say that the virtual currency is over, including the MTGOX case in 2014, price volatility, speculative movements of individual investors, and even the coin check case at the beginning of the year. How did you see the sequence of events?
Certainly, there have been various events, but from the technical perspective of how to handle virtual currencies correctly, the essence has never changed. The root of many problems is that we knew how to handle it properly, but did not dare to use it.
Decentralized virtual currency is built on the basic technology of blockchain. This is a mechanism that prevents double use of coins that are electronic data, so if used correctly, safety can be expressed. While there are technical issues with blockchain, improvements are steadily progressing.
Bitcoin and Ethereum, which can be said to be the precursors of decentralized virtual currencies, are not managed by operators, but run by a code (program) called blockchain. It is designed so that it works correctly even if there is no operator in the center, and the value expressed as a coin cannot be used twice, and only the person who has the secret key can move the coin.
Furthermore, what is important for safe handling of virtual currencies is a technology called multi-signature (multi-sig), in which the value cannot be transferred unless you have two or more keys. To use Bitcoin, put the wallet software wallet in your smartphone, but only the private key is in it. The unused balance (UTXO) is recorded by computers called nodes that are distributed all over the world. There are about 11,000 nodes in the world, sharing all transaction records. On the other hand, the value of the coin can be transferred if you get the private key, so you will be the target of the attack. Since it is very difficult to protect a machine in a general environment from a professional cyber attack, the use of multiuser has advanced. The www.it.bitcoinscycle.com is good platform for selling and trading bitcoin currency.
Until a certain time, when you opened an account on a virtual currency exchange, it set up a web wallet and displayed the address of Bitcoin held and the transaction history. This allows users to check whether the transactions they have made are correct, and multiuser ensures the security of private keys that cannot be protected by themselves by involving professionals. I was able to do it.
However, recently, instead of using multiuser to give users bitcoin addresses, exchanges tend to set up accounts for customers collectively and operate it as exchange account transactions. While efficient for exchanges, users will not be able to see their requested transactions on the blockchain corresponding to their private key.
Blockchain is a natural audit system. Even if the audit firm does not investigate anything afterwards, the audit ends when the transaction is made on the blockchain. The multiuser trading mentioned here is an example of blockchain technology, but there are other proposals to improve security. It can be said that the above-mentioned tragedy is caused by the fact that the superiority should be utilized most and not utilized.
Blockchain – a best bitcoin currency:
Blockchain is the smallest bitcoin currency who value is growing day by day. Almost all counties in the word support this currency and think that it is easy way to make profit from the bitcoin trading. But doing trading with blockchain only use the safest method so that losses are less and profit are more.