2018-01-30 16:17

 

Rational understanding of the risk of bitcoin and block chain

 

[direct reporting network Beijing on January 28th news] (author: Liang Rui) in January this year, once glory bitcoin out of the wave of diving market, the price fell to $11 thousand from $20 thousand, almost halved. Previously, some countries' regulators have taken measures to ban and restrict virtual currency transactions such as bitcoin. South Korea, which has the world's largest bitcoin exchange, has recently made clear that it is preparing a bill to ban the exchange of currency transactions through exchanges. And the concept of the block chain behind bitcoin, after a big heat in the A stock market at the beginning of this year, was still in silence under the tight supervision of the market.
 
The so-called block chain refers to the new application mode of computer technology, such as distributed data storage, point to point transmission, consensus mechanism, encryption algorithm and so on. The block chain is essentially a de centralization database, and is also the underlying technology of bitcoin dependence. In bitcoin block chain, each block contains a bitcoin network transaction information, which is used to verify the validity of information and generate the next block.
 
Explain the block chain concept awkward in terms, these are not understand also never mind. The change from the Pope, in fact, as long as the knowledge of computer network, will be able to understand the risks. The operation of the block chain can not be separated from the real-time processing of the computer, and the two is inseparable from the network transmission information. With the increasing number of virtual currency transactions such as bitcoin, the total amount of information that needs to be transmitted and processed will increase exponentially. The hardware configuration behind it will be higher and higher, and the system will be overburdened.
 
At present, the data is written to a large block chain, waiting for 10 minutes. It takes more time for all nodes to synchronize the data. Nabite coins for example, the validity of the transaction the current generated by the network transmission effect, about 10 minutes to confirm the time of bitcoin transactions each time, 6 times to confirm it needs 1 hours. The transaction speed is so slow, even bitcoin fans are not to be seen, "the North American bitcoin conference organizers of this year announced on its Web site, due to network congestion and artificial processing speed is slow, they stop accepting bitcoin payments to buy tickets.
 
With the growing amount of data exchange, the blockchain database will be more and more large, until the system resources, and the technical risk, yet there is a perfect solution; even if resolved, will be the machine who is strong, whose network bandwidth, who is more dominant, it advertised and the block the chain to the center of the draw further apart. This truth has been bitcoin from the inception of all would be "relatively fair and reasonable design of mining into the strong who who can prove dominant. In addition, regardless of the computer or network, have been hacked or operating risk, some bitcoin exchange due to hacker attacks and suffered heavy losses and even put up the shutters, is an example.
 
Block chain to the "small is beautiful" is a major mishap bitcoin's valuation is bitcoin are another major risk. The price of virtual currency such as bitcoin is built on the basis of market buying and selling. Neither a basket of currencies can be anchored, nor a government credit endorsement, nor is gold, silver and other precious metals set value and use value in one. So the price will be jumping up and down, amazing amplitude. Microsoft, which used to support bitcoin payment in 2014, also quietly cancelled the support of Microsoft stores in the beginning of this year. The reason is that bitcoin price volatility is too big to bear.
 
Worthy of attention is that the market has some private sector chiefs on the block chain is not mature technology and virtual currency risk by continuously under the heavy note. Of course, you are good at closing up the door and making a big fortune. But come out with a high-profile and tell you the block chain is good. I voted. You quickly followed it. It is also necessary for investors to know the risks of bitcoin and block chain rationally and treat the so-called investment opportunities cautiously.