What should I pay attention to in blockchain investment?

Block chain is essentially a decentralized database, is a series of cryptography method is used to produce the associated data blocks, each block of data included in the entire network transaction information over a period of time, is used to verify the validity of the information or generated under a block, so block chain is decentralized and to trust, To collectively maintain a reliable database of technical solutions, popularly speaking is a kind of national accounting technology, or distributed ledger accounting technology.

So how do we understand that? We are all familiar with the concept of database, any website or system behind a database, we can imagine a database as a book, for example alipay, Banks, public accounting firm of the database, it is a actually a billing system, the accounting system by every team in the center of the operation and maintenance, This is typical of centralized database management.

And block chain technology completely overturned this way, there are many nodes in the block chain system, each participating in the system of the node has a chance to charge to an account, on one node to an account, after the completion of the node will send the data to other nodes, other nodes will check whether this page book is correct, if no problem will put it in their own books. In the system, the data representation of this page of ledger becomes a block, which records the changes of the whole ledger data during this period of time, and then sends the update result to each node in the system, so that each node in the whole system has the same ledger.

In layman's terms, it is the most stupid way to ensure the reliability and security of data. For example, if an accounting firm of 1,000 people records all the data, everyone has the same rights to record and verify the data. Any data modification must be approved by more than 51% of the people before modification, otherwise it is invalid data. It's cumbersome, it's stupid, but it's the most reliable. In reality, this method will take a long time and high cost, but the computer realizes the fast and efficient operation of this method through its high-speed calculation. We can imagine the thousand people as a chain connected together, and each person is the node of the chain linking to others. The person (node) who keeps the account is the block. Since every person (node) has the same rights, the destruction of any node will not affect the security of the whole system. This is the kind of highly redundant approach that blockchain uses to build extremely high security.

In a narrow sense, blockchain is a chain data structure that combines data blocks in a sequential manner in chronological order, and is a distributed ledger that cannot be tampered with or forged with cryptography. General speaking, block chain technology is to use the piece of chain to verify the data structure and data storage, the use of distributed node consensus algorithm to generate and update the data, the use of cryptography way to ensure the security of data transmission and access, the use of automated script code intelligent contracts to programming and operating data of a new kind of distributed infrastructure and calculation. Blockchain investment is actually a project, that is, the investment of digital currency. Now there are thousands of digital currencies on the market. We must be cautious before entering the pit.

Investment in blockchain should pay attention to the proportion of investment, do not put all your assets into the investment, need to know that investment has risks, and blockchain investment is best for a long time. Before investment in-depth understanding of your currency, after investment firmly do not parrot, to have their own judgment, the appropriate time to sell to buy.