understanding blockchain

Why choose blockchain

 Many people started to pay attention to the industry because they heard too many myths about getting rich in virtual currency. However, because of the lack of a true understanding of the virtual currency and the blockchain, the actual situation in this industry can not be understood and the future of the industry can not be understood. Because can not understand, so either have been watching, or dwindling. The most typical is one of my colleagues, watching others make money, always wanted to enter.  

The  most important is , blockchain will become the basic technology. Internet-based HTTP can be called the information Internet, the main transmission is a variety of information. The Internet based on blockchain is called the value Internet, passing the value. In the information age you need to be familiar with HTTP, so you need to be familiar with the blockchain in the age of value internet. And, in the future, we should be prepared in advance.

My goal of learning the blockchain is very clear, in large terms, the goal is two:

1. In order to enter the blockchain development to do technical reserves; 
2. In order to guide me how to invest virtual currency.

So, in order to achieve these two goals, what need to learn? The first goal need to learn blockchain technology, we must know what technology blockchain involved, blockchain technical principles, etc .; the second goal you need to learn the virtual currency related knowledge, including the need to solve what virtual currency , Where to buy fictitious currency, how to buy and so on, as well as to understand the future prospects of virtual currency will be. After combing, it becomes a problem to be solved:

• What is blockchain?
• What is the public chain? Alliance chain? Private chain?
• What is forked? Hard fork and soft fork What is the difference?
• What is the essence of bitcoin?
• Bitcoin is how to trade?
• What is a Bitcoin wallet?
• What is a smart contract?
• Where to buy virtual currency? how to buy?
• What is the outlook for blockchain and various virtual currencies?

  In many cases, the first problem to be sorted out is not comprehensive or even very small. However, it does not matter that new problems will continue to emerge during the learning process.
  For example, what consensus algorithm? How to play? And so on, these are some of the new problems I discovered during my studies.

This step, the most important thing is to determine the big goal, and then disassembled into a small problem to be solved

Here's my summary understanding of some of the core concepts after a lot of extensive reading:

1. Blockchain : In a narrow sense, the blockchain is a distributed database, the data structure is chronological order to connect the data blocks of a linked list, each node in the chain is a block, block general Each transaction data is packaged together using a binary tree (such as the Merkle Tree) to form a summarized hash, plus a timestamp, which is the unique identifier for a block. Broadly speaking, blockchain is a distributed infrastructure model that combines multiple technologies such as distributed data storage, point-to-point transmission, consensus mechanisms, and encryption algorithms.
2. Bitcoin : There are a lot of people who understand bitcoin is the string of numbers on the books, but strictly speaking, Bitcoin is a point-to-point electronic cash system is a complete system, this bit from the bitcoin white paper on the title Already explained. Bitcoin can be simply understood as the first application of blockchain technology. However, the notion of "bitcoin" preceded "blockchain," the concept of "blockchain," which emerged from the abstraction of Bitcoin's underlying technology as Bitcoin developed for some time. In addition, from a investment point of view, the total amount of bitcoin is constant at 21 million, its value can be compared with gold, but the current market value and the gap between the market value of gold, there is still much room for growth, so in the long run I am still very optimistic.
3. Public chain / affiliate chain / private chain : public chain is a completely open blockchain, such as bitcoin, Union chain is not done public, refers to a number of agencies involved in the management of the blockchain, each Organizations are running one or more nodes, the data which allows only different institutions within the system to read and write and send transactions, and jointly record the transaction data, the Alliance chain, each party do not have to worry about where their own data, The resulting data is only visible to the public. Only the data of other participants can be seen through the key authorized by the other party, so as to solve data privacy and security issues while enabling decentralization. The private chain is completely private, Generally suitable for multinational corporations, this piece has not yet understood what the representative application.