So a little knowledge goes a long way. Here we are explaining the idea of the underlying technicality of cryptos. This a lot more complicated.
*We are just trying to explain it so the idea can be explored by a greater amount of people, with greater ease. For more complicated explanations, please head to other sections of BlockPublisher.
So, Blockchain uses something called a RSA algorithm. This is the underlying cryptographic technology of the Bitcoin Wallet and several cryptocurrencies. This algorithm allows users to be given consistently update, transparent data of the entire system. The idea is not as complicated to understand, keep reading.
This is done by a pair of keys. The users are given a pair of keys. The private key allows the user to look into their own wallet, use their own wallet to make transactions, exchange coins, add or subtract coins in whatever quantities the owners/users may like.
However, when this owner (call him Bob), opens the wallet or ledger of another user, he will have to use a public key to unlock the data. With the public key, he will not have the same authority to move or use those funds; As they are not his funds to use.
Dylan may see the history or current amounts of the other user but the visibility does not mean ownership. This ownership is established by the private key. Dylan can only use his own private key for his own wallet. The rest is for looking purposes only, with the separate key.
Similarly, if Kenna were to open Dylan’s ledger, she must use a public key; her public key. Her private key would not unlock, neither does she have access to Dylan’s private key.
These keys mark a clear difference between the user’s rights and access. These keys also help every user to see the same thing, maintain consistency of data and ensure that in a case of tampering others may retaliate or highlight the discrepancies.
This technology allows the users to enjoy a decentralised, unregulated and unhegemonised network run on democratic principles. The network is made safe because all activity is tracked by all users. The ledgers are kept public and the support technology coefficients allow shady activity to be marked.
Both of the keys keep record about all moves on the network, this eliminates the room for doubt or unfair market price inflation or deflation. This system is a self regulating network. The synced ledgers and a strong peer to peer network help make it a ‘pure’ market system.
This system is turning out to be an innovative force in countries where power and wealth have remained saturated at the hands of few. Don’t we need more of such stuff? Clap your hands if you agree! *CLAP*
This technology has helped making the system more efficient, removed several risks and threats that the concurrency might face. Cryptography is not limited to cryptocurrency, neither is blockchain. Cryptography and blockchain also go hand in hand for the creation of alternative public systems, healthcare and entrepreneurship.
The pairing is expected to reshape what patents mean to us and is likely to transform the entrepreneurship world in no time.