This is how a network is formed, which is distributed to all participants within the network and when it is about the bitcoin. As we already said, the blockchain contains blocks, which beside the information for the transactions also contain much other information for the previous transactions, as well as referent connection with the previous bock(s), this way making a chain – from where the name itself derives. All nodes, participants in the network, own a complete copy of this chain. In order to verify a transaction, highly sophisticated mathematical principles are used, as well as algorithms and operations that are performed by certain participants in the network, called Miners.

Verifying the transactions and the blocks, in fact, means that the nodes match automatically with the current blockchain by the principle of consensus. If anyone tries to enter an invalid transaction or to change any transaction, the nodes will not come to a consensus and those transactions will not be added to the chain. Every block contains data for the previous blocks and transactions, so it is impossible (or completely unprofitable) to make modification to some of the previous blocks or transactions. This means that for a change of a previous block, all following blocks in the chain should be also changed, and at the same time the whole computer power is bigger than that one of the other participants in the network. This possibility is smaller than the one that in the next 2 seconds the Earth will be destroyed by a meteor. Bearing in mind that generating each block means a huge amount of energy consumed in the mining, even the attempt to corrupt a transaction is unthinkable.

This way all participants – nodes give a certain stamp, confirming that all transactions and blocks, which are added to the chain, are valid and correct. What is even more important in the whole story is that all of this is decentralized and that even the author himself has no control and cannot change it. Thus, it is certain that all participants have access to a unique and reliable source of information. Also, for keeping the network in condition, there is an award for all participants, which is given for each generated block (currently it is 12.5 bitcoins for one block). The award is distributed to all participants (miners), depending on the share they had at the time the block was generated (found). This way, every moment a certain number of bitcoins is circulating in the network, which prevents internal inflation.

From all of the above-said it appears that for blockchain technology, the bitcoin is less important, meaning it is just one kind of blockchain technology application, which is much wider than the financial one. The software is not interested on how much dollars or euros are one bitcoin worth. Each bitcoin is containing 100 million units, called Satoshi after the name of the founder. Each part of these 100 million units can be programed and identified. This means that every participant can program each of these units to represent cent, dollar, kilowatt hour of electric energy, address, phone number, digital certificate and much more. This way the bitcoin can indicate many other kinds of properties.

At the end we can conclude that the use of this technology can be found in different spheres outside the cryptocurrency. For example, companies can program the budget for various needs, as employee salaries, material cost, sales etc. The work in many state institutions, such as cadasters, statistics, elections etc. can be improved, so the corruption of the state apparatus would be significantly reduced. Having in mind the three major advantages in terms of ordinary database, and they are: it is completely decentralized – it is not controlled by third parties (states, goverments); security is at the highest level and almost impossible to corrupt (in fact, from the first appearance on the market there is not one of hacking); and the transactions are taking place almost in real-time, blockchain technology is considered to be introduced by some of the largest banks in the world. Isn’t it hypocritical?

Bearing in mind that nowadays many people have very powerful devices in their pockets, using the Blockchain technology they could contribute a lot and form a completely new decentralized internet.

Although all of these ideas and resumes are still impossible to be implemented due to the insufficient development and interest in the blockchain technology (which is perfectly fine for some people), it is certain that in future, many of the devices that we use will work on software based on the Blockchain technology and of course it will find much bigger application that is well deserved anyway.