3 minutes to understand what is the block chain __ Finance

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Block chain has become the world's most fiery concept of internet finance, But,what is  block chain.

In traditional cases, a database is like a large ledger, regardless of the size of the system behind it. For example, a treasure of the database is like a big ledger, the account records a user how much money, b users have how much money. If a user pays a dollar to B users, then a treasure on the B user account plus a dollar, and in a user account to lose a dollar. Therefore, the change of database can be regarded as a kind of bookkeeping behavior.

We usually think of someone who maintains the system and who manages the database as a rule, while other users have no right to participate. Just like a treasure of users can not participate in the specific accounting behavior.

But--block chains--subvert the tradition and involve every user in the system. The

block chain is like a large general ledger, and each user in the system can participate in the competition bookkeeping. Within a certain period of time, the system will find the fastest and best user in the competitor. The user writes the data changes in this time into a block, like writing to a page, and copies the account page to all other users in the system for backup and complete the action. In the next time period, each node in the system has a copy of the full ledger.

Because each chunk of data is linked by cryptography, we call it "chunk chain (Blockchain)", or   "Distributed General Ledger Technology (distributed ledger Technology)".

Block chain for all people to participate in bookkeeping. The national bookkeeping is more stable, because the system does not have a specific accounting person, any part of the system node or destroyed, will not affect the operation of the system. It is more secure, the system stipulates that the same number of books is the true ledger, a small part of the inconsistent with other users of the ledger is the book of accounts. This makes block chains with enough nodes difficult to attack and tamper with. These nodes are distributed in any part of the Internet, unless you are God and can control most of the world's computers, otherwise can not be tampered with. So the block chain is considered the most secure data management method ever. National bookkeeping is more efficient, because the absence of a centralized intermediary agency, fully automated operation through pre-set procedures, can greatly reduce costs and improve efficiency, and ensure that the book records process and content is open and transparent.

Bitcoin is only a pilot application of the block chain technology scheme in the area of payment, and block chains can also be used in a wider range of areas, such as healthcare, supply chain, IoT, security certification, social networking and artificial intelligence. The Economist says that the "trust machine" of the chunk chain "Machine" has a huge and far-reaching impact on global finance and even on social structures.

If summed up in one sentence, block-chain technology is in the context of many Parties without trust, through cryptography technology to enable all the participants in the system to collaborate, to jointly record the maintenance of a reliable data log way.