Abstract
Due to the fact that modern computers have “perfect memory” and can process a huge number of transactions through a computer network very quickly, the idea of a decentralized currency system is not a new thing and it has long been a dream of advocates of the concept of anonymous digital money. Satoshi Nakamoto has come up with a genius idea to create a system that is a digital abstraction book of the balance and make that system public for all practical transactions related to accounts and transactions, which, when simplified, are reduced to mere addition and subtraction operations. He used the digital media feature to make perfect own copies, so he distributed this copy of the balance book to every computer in the network (decentralized system) and obtained a unique (structurally unchangeable) and global (public) book of balance. Thus, a revolutionary blockchain technology was created, which initially enabled and supported the functioning of the first digital crypto currency - bitcoin. Blockchain technology is an amalgam of several different and equally revolutionary technological achievements in the field of cryptography and computer networks. The aim of this paper is, using Bitcoin as example, to briefly explain the functioning of this technology and its suitability for use in many other areas of human activity, especially those that have a problem of distrust and the possibility of fraud.
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Notes
- 1.
Open source software with license for modification, reconstruction and enhancement.
- 2.
The QR Code (Quick Response Code) is a type of two-dimensional barcode originally designed for the automotive industry in Japan. Barcode is an optical tag that the machine can read and contains information about the product to which it is attached [10].
- 3.
Hash function is any function that can convert digital input data of arbitrary size into a set of digital data of a fixed size (hash value). A quality hash function is that one which has small differences in input data result in very large differences in output data. Hashing is the process of getting hash values [14, p. 10].
- 4.
The feature of the sha256 hash (Secure Hash Standard) function is that regardless of the size of the input, one letter or whole book, always as a result, it gives a 256-bit number. This 256-bit number originally found in the binary zeros and ones format is shown in its hexadecimal version, which is 64 hex characters (24 = 16; 64 * 4 = 256). The characteristic of a good hashing function, is its collision resistance (collision is getting the same results for different input values).
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Stupar, S., Bičo Ćar, M., Šahić, E. (2020). Challenges of Applying Blockchain Technology. In: Karabegović, I. (eds) New Technologies, Development and Application II. NT 2019. Lecture Notes in Networks and Systems, vol 76. Springer, Cham. https://doi.org/10.1007/978-3-030-18072-0_41
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