Cyclist on Wall Street
In 2016, financial giants including JP Morgan, Citigroup, Goldman Sachs, and Nasdaq all expressed their enthusiasm for blockchain technology. The blockchain technologies that these giants are keen on are also referred to as distributed ledgers. What is a distributed ledger? Let's start with another thing.
Before the establishment of the Nasdaq, people used bicycles to carry bags of debt and ride on Wall Street for the purpose of completing liquidation as soon as possible. After more and more business, the bicycle was too busy. In the 1960s, Wall Street only traded for 4 days a week for 4 hours a day, in order to keep the liquidation rate up.
Centralized DTC clearing system
In this way, everyone thinks that it is not okay. Bicycles certainly cannot run over computers. In 1971, some people took the meeting and said, "Let's think of a way, so we proposed the DTC (United States Depository Trust Company) clearing system." The system's approach is that all transactions must be performed within the system, including brokers who also want to access the system. Now Nasdaq is still using it.
Obviously, its problem is just changing a bicycle that can step on the accelerator. We often see that in some film and television dramas, the death of the emperor and the head of the family led to a chaos and even collapse of the entire nation and nation. The fundamental reason is that the system of centralization cannot last. When there are enough deals and enough brokers, we find that this system is also in danger of crashing or even crashing.
So experts think that autonomous, distributed systems will not be better? The answer is yes. The blockchain is a distributed ledger. Each node can display the general ledger, then maintain the general ledger, and can not tamper with the ledger unless you control more than 51% of the nodes, but this is not possible.
Centralized family book
Just a little more, if you have a book at home, let you book it. In the past, it was the father and mother who gave you the salary and let you remember it on the books - it was still a little exciting to think about it. If you are greedy in the middle and want to buy some tasty food, you may have less than a dozen records on your books. Then you want to buy a mobile phone, and you will need to keep a few thousand records on the books. This is just an example. I believe that when you were young, everyone wanted to spend some money from Mom and Dad’s pocket.
Distributed household books
But with distributed books, these problems would not have, because you're in accounting, bookkeeping is also your father, your mother is also billing, they can see the general ledger, you can not change, Mom and Dad You can't change it. If you want to buy smoked daddy and you want to greedy, you can't do anything about it.
Is a block chain to the center of the distributed nature of the books, which itself is a series of interlinked cryptographic generated using data blocks, each data block includes a plurality of transactions over a network to confirm the effective bits of credits information.
