Blockchain technology "BlockChain" works in the form of an electronic record system to process and record transactions, allowing all parties to track information through a secure network that does not require verification from a third party. In the coming days, we will hear this term widely repeated and spread and becomes the talk of many technical sectors around the world.
This is understandable when you consider the fact that many people are comparing the importance of "blockchain" technology to the importance of the World Wide Web in the 1990s, but what is blockchain? How it works? Most importantly, how do you put yourself in a place to take advantage of, what could be, a tremendous opportunity for growth.
Economist Maher Al-Dorf says: "Blockchain" as a term, although it is strange to many, but in the context of economic development, "people may find themselves in front of a new stage of financial transactions, and a new form of the global financial system."
He added in his speech to "Sputnik": "Let's talk in terms of technology," blockchain "is a decentralized database that stores a record of assets and business operations, that is, we are in front of a global ledger that uses the highest level of encryption, and when a transaction is made, it is published globally by millions Computers on the network then collect data in separate blocks, each of which is connected to the preceding block and sealed with a digital stamp to form an endless chain. If someone wants to penetrate one of them, he must penetrate all the blocks that precede it, and here we are talking about an unprecedented level of security. "
Al-Dorf continues, saying: “In the case of current financial transactions using cash, we need a middleman to complete them from banks, government institutions and credit card companies. These intermediary institutions suffer from increasing problems such as red tape, slow completion of transactions and high commission rates for their services. From the mediation ring, allowing people to do peer-to-peer financial transactions, and cementing the trust generated by the crypto system that is the heart of blockchain technology. "
The finance game
Regarding changing the foundations of financial financing through blockchain, Al-Dorf said: “The current global financial system has become like an old, dilapidated car that is struggling to do its job, as it suffers from chronic problems. Blockchain could be the spark of this change.
He explained that "blockchain" is a decentralized technology, and helps reduce operational costs to a minimum, allows for conducting financial transactions at a rapid pace, and provides a very high level of security and confidence, noting that "these factors that are rarely combined in one technology, have made it" Blockchain "is the focus of attention of large and medium global companies, which will have to re-adapt their tools and systems of work to accommodate the newcomer, and thus we will be facing a global wave that will change the concept of financing forever."
"As a personal opinion, we are on the verge of moving from an industry-based economy as the main engine of the world to a technical economy with its various technological tools, in which blockchain technology is the latest component," he added.
He added, "The dream of" blockchain "may not be as rosy as it appears, as any new technology will carry with it a number of problems besides the positives, so it is too early to predict the final shape of the global economic system based on this technology, and we will be facing a complex process of transformation that takes place on Long stages in time, but the beautiful thing is about the participation of any individual sitting behind his computer screen and using this technology to establish this new financial economic system. "
Stock exchange
Al-Dorf expected a mutual benefit between the stock markets on the one hand, and the new technology on the other hand, and in his opinion, "they will push each other forward," explaining his saying:
Investing in the shares of companies and applications listed in the stock market, which will make blockchain technology a cornerstone of its operational structure for these shares, will attract huge capital due to the advantages that this technology provides to the parent companies, and we cannot deny the importance of investing in the cryptocurrency markets, which It appeared a few years ago as "Bitcoin" and "Ethereum", which have become worth hundreds of billions of dollars.
For information, and as an example of "Bitcoin", where the total currency market is about $ 180 billion now, despite its apparent instability, and here price fluctuations in short periods become the most prominent feature of these currencies, and they attract more new investors looking for wealth and new techniques to invest their money. .
Posted Using LeoFinance Beta
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