What is a blockchain technology?

The blockchain is an undeniably brilliant invention, made by person or group of people that go by name Satoshi Nakamoto. Since then it has evolved into something more significant. But, the essential question, what everyone has been asking is: what is a blockchain? By allowing information to be transferred and not copied, blockchain creates a new revolution on the internet. Initially, it has been used in digital trading currencies, but now IT experts are trying to find the new uses and potential for this technology.

Often you can hear that bitcoin is called digital gold and for a good reason. To date, the entire value of the currency is close to $9 billion. On the other hand, the blockchains can make other types of digital value. Like with the internet, you don’ need to know how it works, to be able to use it. However, having the basic knowledge of this technology can help you progress further.

The blockchain isn’t only for bitcoin

The blockchain is a massive database, that is validated by a broad community, rather than one authority. It collects the records of all transactions and makes it public. Each block has a number of transactions recorded, and the chain feature connects them all. When the records are created, they are validated by a distributed network of computers and linked with the previous entry in the chain. In this way, they are making a chain of blocks or blockchain.

Considering that blockchain is controlled by a massive network of computers, it means that no one has the complete control over its history. This is an essential feature because no one can go back and alter the things. In this case, the blockchain is a public ladder that cannot be easily tampered with. Even though blockchain is often connected to digital currencies, many organization are trying to use it for other purposes. They are attempting to establish a voting system and implement its features into a health care system.

Where did the blockchain come from?

Although the blockchain technology has been efficiently used in the last decade, its origin goes back fat further. In 1976, a paper on New Directions in Cryptography argued about the idea of a mutual distributed ladder, which is what blockchain is now. But, it would take us a couple of decades and powerful computers to fully implement this technology and make these ideas useful.

To validate the blocks in the same way traditional transactions are approved, you need the help of blockchain employees, in this case, the assistance of powerful computers. Considering they need to have an excellent configuration, they are often expensive, consume a lot of electricity, and you need to keep them cool. This is one of the reasons why bitcoin acted as an excellent start to the introduction of blockchain technology. It will always reward the users who are taking part in this process, which is called mining. Every time people validate a transaction, they make money.

How to trade cryptocurrencies?

Cryptocurrencies are very popular nowadays, and many investors are interested in this type of investment. But there are a lot of risks connected to digital currencies and a lot of people aren’t brave enough to trade them. Now beginners are more interested than regular traders. This is one of the reasons why we what to present you this guide. The two most important things you need to review is the cryptocurrency wallet and cryptocurrency exchange. After all, the safety of your money is essential. In the last couple of years, the cryptocurrency market has considered substantial damage with numerous hacker attacks.

What to know before you start trading

A cryptocurrency exchange is not yet a part of the regular stock exchange. But, we would suggest you use Coinbase and GDXA, the pro version of Coinbase with lower fees. You need to keep in mind that neither of these are the same as Wall Street and its exchange.

Beginners might prefer to trade cryptocurrency stocks on the stock market. The most notable bitcoin stock is GBTC. But, keep in mind that GBTC only trades at a premium, which means that bitcoins are cheaper, that buying shares here. This will not be an ideal solution for many people. Also, cryptocurrency trading market is open 24/7, even days in a week.

The easiest way is to trade your coins at Coinbase, but you can only sell, buy and store bitcoins, Ethereum, litecoin, bitcoin cash and coinbase. On the other hand, if you are serious about trading other coins, then you can check out GDAX, Bittrex, Binance, and Kraken.

In 2018, the cryptocurrency market will be volatile, which means you can make a fortune, but also, you can lose all. You should only choose the wallets and exchanges that reputable and reliable if you want to avoid frauds.

Cryptocurrency mining

You don’t always have to buy coins, considering their price. There is also another way; you can invest in digital currencies via cryptocurrency mining. This is a legit way, and you only need a powerful computer, and you can start right away. For example, an average investor will want to trade USD for coins, and they want to avoid the complications and investments through mining. In this case, your job is to validate transactions and earn money.

How to start with a trade?

First of all, you need to choose a reputable company that will provide you an exchange and wallet, just to keep things simple. Beginners should also trade prominent coins, such as Bitcoin and Ethereum. But, for this trade, you need to invest a lot of money. It’s always best to choose the exchange located in your country, for example, in the U.S. you can choose Coinbase. After you master Coinbase, you can switch to next one. Beginners shouldn’t perform margin trading, unless they know that it is and at least you accumulate some skills. Considering its stability, cryptocurrencies are extremely volatile and you need to careful.

Cryptocurrency for beginners

When digital currencies appeared on the market, many people were skeptical towards this type of investment. A small number of them, who were brave enough to invest in bitcoin, now are rich people. In 2017, digital currencies reached their peak, and now many people are interested in investing their money in cryptocurrencies, but the process is more challenging than it was a couple of years ago. But, if you are a beginner and you want to explore crypto, then we have prepared a small guide for you. So, here is what you need to know about digital currencies.

Wallets

To trade any type of cryptocurrency, you need a wallet to store them. In this case, bitcoins need to go in bitcoin’s wallet. Wallets behave like a crypto bank account. But, how can you get an e-wallet? The easiest way is to sign up for an exchange that allows you to buy, trade or sell digital currencies. In this case, you will have an opportunity to generate a wallet for every token that you traded. For instance, Coinbase will provide you wallet for bitcoin, Ethereum, litecoin, and bitcoin cash. You need to understand that crypto wallets don’t behave like physical one. They are just a secure window into the blockchain so that you can track your transactions. But, keep in mind what type of wallet you are choosing because it will protect your investments and money.

Exchanges

If you want to start trading cryptocurrencies, then you need to choose an appropriate exchange. But, considering there is a large number of them on the market, you will have a hard time deciding the right one. In the last couple of months, we have been the witnesses of many frauds and hacker attacks, so it’s still risky to invest in them, but this doesn’t stop people. There are a couple of steps which will help you choose the right exchange. First of all, select the exchange that is located in your country. Bitcoin is still the most common trading pair, and if you are to invest in other digital currencies, you will only be able to trade and buy it against bitcoin. Most exchanges aren’t regulated, so you are risking here. Compared to traditional stock exchanges, crypto exchanges are open 24/7, 365 days.

Popular exchanges across the globe

Coinbase – located in the U.S., Coinbase is one of the largest exchanges in the world. Investors can trade bitcoin, bitcoin cash, Ethereum, and litecoin and you can buy them directly with your credit card. But you need to have a $250 weekly limit.

Bittrex – another U.S. exchange and even more popular than others because it offers more than 1300 alternative cryptocurrencies. You cannot deposit directly, and you will need to buy bitcoin or Ethereum and transfer them into Bittrex before you can trade.

Binance – this exchange is located in Hong Kong, and it was only launched in 2017. However, their platform became very popular due to a large volume of trades.

Why are algorithms so important?

Many beginners and software developers ask this question at an early stage of their career because they believe in things they see, which is not the case with algorithms. In reality, we know the result, such as iOS, Windows apps, Android apps and many other. But, behind that process algorithms stand. Another question that imposes is why do we make algorithms? To explain this question more comfortable, we will use a simple example. Let’s image you are building a house out of bricks. You have a general idea how the house should look like, how many rooms should have and how much materials you need. But, you aren’t an expert, and you could build something that looks like a house, but, can it stand winds, waves, weather conditions, and earthquakes? The same rule you can apply to programs when you write them without algorithms

Runtime analysis

One of the essential aspects of algorithms is their speed. It is easy to come up with an algorithm to resolve a problem, but, if it’s too slow, it’s back to drawing board. Considering that speed of an algorithm depends on where it is run, as well as the precise details of its use, developers usually talk about the runtime relative to the size of the input.

Google search algorithms

Google in the most popular search engine in the world, and it generates the millions of search inquiries every day. Some of them are complex, while other are simple. But, in order to manage all these queries, it has to use a variety of algorithms such as indexing algorithms, safe-search algorithms, site and page quality algorithms, Google instant and many more. They all have one thing in common, to show the results according to users’ requests.

Online money transactions

Online transactions have become the easiest way for individuals and companies to pay their bills and buy some accessories. But, many of us don’t know who our bank account and pin number are processed by banking gateway while performing a transaction. A lot of service providers use secure gateways for banks to complete any transactions safely. This helps companies like Master Card and Visa to keep their users’ information, such as card number, password, and bank statement safely. This entire process is managed through a series of algorithms that provide people reliable and save use. Without them, you won’t be able to make any online payment and still keep your safety.

Space search programs

The use of computer algorithms plays an essential role in space search programs. Scientists have to use massive calculations, and they are managed by high-end mainframe computers, which are enriched with sophisticated algorithms. Algorithms also decide which processor, Intel i7, i3, i5, is the best for any complex problem. We are in the age of algorithms because they solve our everyday tasks and we won’t be able to live with them. They make our life more comfortable and, in the future, they will be able to predict our behavior.

Top four real algorithms that dominate our world

If you are an algorithm beginner, then you must be wondering who we can explain them, what are they and how they impact our society? In fact, algorithms are all around us, and they make the digital world functional. It is essential to mention that algorithms aren’t only used in computing sciences but they are a mathematical entity. They were first discovered in 1600 BC, but the modern use started around 1930s. In this article, we will explain the top four algorithms that rule the world and why without them our life wouldn’t be possible.

Merge sort, quick sort, and heap sort

What is the best algorithm to manage elements? It all depends on what you need, and that’s why we put the three more frequently used algorithms which are used to sort items. Maybe you have preferences, but three of them are equally good. The merge sort algorithm is one of the essential algorithms nowadays. It uses divide and conquers approach to solve problems. John von Neumann invented this algorithm in 1945. The quicksort has a different approach to sorting issues. It can use in-place partition algorithms, but the problem with them is that they aren’t stable sort, except for sorting RAM-based arrays. The last one is the heap sort which uses priority queue that decreases time in the data.

Fourier Transform and Fast Fourier Transform

Our entire digital world uses three simple, but very potent algorithms, which change signals form their time domain into their frequency domain and vice versa. In fact, you are seeing and reading this articles thanks to these algorithms. The internet, Wi-Fi connection, smartphones, PCs, satellites and other devices have a computer inside and use these algorithms to function, and you can’t get a degree in science without studying this type of algorithms.

Dijkstra’s algorithm

It is safe to say that internet wouldn’t be functional without this algorithm. This graph search algorithm is used in various applications and, in this case, the problem can be modeled and presented as a graph, and you have to find the shortest path between two nodes. Considering that science has advanced, and today we can use better solutions of finding the shortest route, but Dijkstra’s algorithm is still used because of its stability in systems which require it.

RSA algorithm

If there weren’t cryptography and cybersecurity, then the internet wouldn’t be as important as it is today. The security can be observed from different perspectives, you may think security in the era of NSA and other intelligence agencies or are you really that naïve to believe that you are safe on the Internet. People need to be safe to spend their money. After all, you wouldn’t fill out your credit card number on the web, if you know it’s not secure. In this case, RSA algorithm remains as the most important in the field of cryptography. It shapes who cryptography works, and it’s a solution to a simple, but also challenging problems.