Blockchain news update november 2020
The development of blockchain update news technology lately is growing rapidly even though some developers are doing it quietly. Whether it’s by the banking world in several countries or blockchain applications in other functions such as games, MSMEs, etc.
The growth of blockchain technology cannot be separated from its function of offering solutions to old technologies. That is considered imperfect in the application in life.
In the financial world, especially. The presence of blockchain technology gives a new color to the ease of transfer money at a low cost.
What is blockchain technology?
Blockchain is a digital data storage system that can contain records linked via cryptography. Blockchain technology has now been used by various sectors, one of which is for transactions in cryptocurrencies such as Bitcoin.
The blockchain system is a digital transaction record consisting of many servers.
There are two important elements in building a blockchain, namely block, and chain. Each block records the information contained in the computer which is divided into several blocks and connected by a ‘chain’.
Technically, blockchain is a series of blocks containing digital information. Each block has a component called a hash. Hash is a set of characters that make up various pieces of information on a block.
And it turns out that blockchain can not only be used in the financial sector. But many industries can adopt this blockchain technology. So this provides benefits to many industries to be able to develop platforms for the sake of promoting the industry.
How blockchain work
In simple terms, how blockchain works are starting from when a block stores new data.
This system consists of two types of records, transactions, and blocks. These transactions are stored together in a block.
And in each block contains a cryptographic hash to form a network. The cryptographic hash function is to take the data from the previous block and convert it into a specific string. With String, the system can function to detect sabotage.
With this method, meaning that each block does not need to have a serial number, the hash allows each block to verify its integrity. Each block will ensure its validity from the previous block. Block linking isn’t the only thing that keeps the network safe.
Blockchain technology also decentralized, each computer with the software installed has a copy of the Blockchain which is constantly updated with new blocks.
There is no centralized server that holds transactions, and since each new block has to meet a requirement in the chain or network, nothing can overwrite previous transactions.
Another transaction requirement, i.e. it can be used to determine valid entries. In Bitcoin, for example, valid transactions must be digitally signed and must issue one or more unused outputs from previous transactions, and the number of transaction outputs cannot exceed the number of inputs.
A simple analogy of blockchain is like Google docs, when a document is shared with several people, it can be opened simultaneously on different computers without waiting for one user to close the document.
Blockchain growth history
The history of blockchain development is inseparable from a person with the pseudonym Satoshi Nakamoto who published to a group about Bitcoin peer-to-peer electronic systems. It started in 2008.
From this idea, the first development was to create the first crypto-based digital currency which was named Bitcoin in 2009. The first successful Bitcoin transaction that year was by computer scientist Hal Finney with Satoshi Nakamoto whose identity is unknown until now, this pseudonym is very famous and all crypto fans know him.
Computer programmers continue to develop Bitcoin who is interested in the idea of this technology. Then in 2010, the first transaction to purchase Pizza with Bitcoin was successfully carried out by a computer programmer based in Florida, Laszlo Hanyces.
Two of Papa John’s pizzas were priced at 10,000 BTC at the time which was the equivalent of $ 60. Compare the current value of 1 BTC to more than $ 14000.
In 2011 the value of 1BTC was equivalent to $ 1 and several organizations such as Wikileaks, the Electronic frontier foundation and several other organizations started accepting Bitcoin as a payment method.
The popularity of Bitcoin is increasing and there are TV shows that broadcast about Bitcoin such as The Good Wife, then also appears the Bitcoin magazine published by Vitalik Buterin, who is one of the Blockchain technology developers.
Bitcoin is gaining popularity and the market capitalization reaches 1 billion dollars and the value of 1 BTC reaches $ 100 for the first time. At that time Vitalik Buterin published the Ethereum project writing which suggested that blockchain has other possibilities besides Bitcoin.
Along with the popularity of Bitcoin, several companies began to adopt Bitcoin as a means of payment, such as the Zinga game, Overstocks.com, D Las Vegas Hotel.
In the same year, the Vitalik Buterin Ethereum project raised 18 million dollars from fundraising through ICO which was stored in the form of Bitcoin.
More than 200 blockchain companies that are members of R3 have started trying to find new ways to develop a blockchain to be applied to technology, it’s called blockchain 4.0. This year Paypal also announced integration with Bitcoin.
The growth of Bitcoin users is increasing, more than 100 thousand traders accept Bitcoin. NASDAQ, one of the leading exchanges in America, started testing this blockchain technology.
The giant technology IBM announced that blockchain technology could become a cloud-based business solution in 2016, making blockchain technology grow with an appeal for better technological advances.
In the same year, Japan accepted and recognized the legitimacy of the use of blockchain and cryptocurrency in the country.
Demand for Bitcoin increased in 2017 and was the first time Bitcoin was equivalent to $ 1000 for the first time this year, and reached an all-time high of $ 19,783.21 / BTC, a market cap of 150 billion dollars.
The positive comments by JP Morgan CEO Jamie Dimon, who said that blockchain is the technology of the future, earned Wall Street’s trust.
Facebook plans to create its own digital currency called Libra, but this idea still faces obstacles from the government, especially the central bank, because it can damage the country’s financial system.
With the impressive development of blockchain decentralized technology with the emergence of the stablecoin DAI and its regulatory body, the Decentralized Autonomous Organization grew to over $ 10 million at its lowest point in 2019.
This lending network regularly over $ 100 million is locked into the foundation supporting these dollar-pegged tokens.
The coronavirus pandemic that hit the world also affected Bitcoin, prices had dropped but finally got back up.
Even during the US elections, Bitcoin jumped more than gold. Bitcoin was up 120% during US election week while gold was up only 30%. The crypto index gained about 11% for the three consecutive days since election day, the period when the dollar fell to its 2018 lows.
Blockchain in finance
Blockchain in the financial or banking industry offers solutions that have been faced by many customers, such as high transfer fees, transfer times that take longer, and other rules that are considered complicated so that not all people have access to banking.
In the financial industry, blockchain can be developed with various benefits, in terms of security and transparency blockchain provides a solution with a high level of security and transparency where all transactions recorded on the blockchain can be accessed by anyone.
Several things that can be developed in blockchain technology in the financial industry include:
- Providing a money transfer solution at low cost and transfer speeds in just minutes or even seconds.
- Fundraising via blockchain, for example in ICO programs.
- Asset tokenization on the blockchain making it cheaper and faster for transactions.
- Lending money using blockchain technology.
Blockchain in society
Maybe some people who are new to Bitcoin, they think that blockchain technology is only used for cryptocurrencies.
But actually, blockchain technology can be developed more than the industry. This can be developed for digital records in the world of health, identity, valuable assets, data, to tax invoices. It can even be used to make diploma records where the data can be accessed globally by everyone so that it can make it easier for a company to find and find qualified employees.
For example, someone who just graduated from school then applies for a job, after an interview he shows a diploma that is integrated into the blockchain so that it will be easily found by the company.
Even blockchain technology can help solve the problem of corruption in a country. As suggested by the United Nations Office on Drugs and Crime (UNODC) for a country with a high level of corruption like Kenya, it can develop blockchain technology to help reduce corruption.
Furthermore, blockchain makes it possible to reduce nuclear risk. As a report by the Center for Science and Security Studies, which is the research wing at King’s College London. In the report, it allows the application of blockchain technology to gain trust between countries in reducing nuclear risk.
The study is entitled The Trust Machine: Blockchain in Nuclear Disarmament and Arms Control Verification
Blockchain in privacy
In blockchain technology, encryption is used for privacy security, and one that plays an important role is hashing. Hashing is an algorithmic process known as a hash function that takes input data (of any size) and produces a predefined output which has a value of a definite length.
Hash, a unique marker for the data block. Each new hash corresponds to the hash of the previous block. Meanwhile, the hash block will change if there is a change in the data Hash markers on the blockchain play an important role in ensuring the security and immutability of the blockchain.
Blockchain news update November 2020
First, report blockchain news update.
In a World Economy Forum or WEF, it has included Blockchain technology to become a useful discourse to help develop the economy.
In a report written by Cointelegraph. It is stated that blockchain and the Internet of Think, artificial intelligence, and mobile platforms are the future technologies in digital finance. If all of these frameworks are seriously developed. It can help the world economy especially in the midst of a pandemic so that the need for cashless increases.
Citing from Ambcrypto. Verizon is a New York-based telecommunications company with the launch of a “blockchain-based open-source newsroom product. The purpose of designing this is to improve the company’s accountability standards,
Verizon’s new initiative with this platform to document the company’s own news releases and provide a record of communication changes on the public blockchain.
The next news is from Toyota Systems. An IT subsidiary owned by Toyota Motor Corporation. They announced that it is partnering with DeCurret to experiment with a digital currency solution to automate the payments of 2,500 Japanese employees.
The breakthrough that was made by Toyota was especially for welfare payments or benefits in digital currency.
However, choosing to pay with digital currency cannot be exchanged for Yen.
Citing from Cointelegraph that the winner of the Turkish league, İstanbul Başakşehir will launch their own token for fans.
The football club has joined the Socios platform. They will launch their own fan token namely $ IBFK by the end of 2020.
With this token fans can contribute to the club to vote which will later get points. If you have reached certain requirements. Later the tokens can be exchanged for VIP class tickets that can be used to watch the game.
Blockchain is a technology combined with cryptography that can be a multi-functional solution to help economic progress. And also play a role in helping reduce corruption.
Of course, this will be a challenge for developers to create applications that function as intended.
A transparent blockchain system will make officials think twice about committing acts of corruption. Because the public can sniff out immutable blockchain data records.
Ready to start trading?
You may read related article