Is it safe to have the economy in the cloud?
Let’s imagine a network with several connection points, exchanging information horizontally, securely and dynamically: if one of the points fails, the rest will not suffer? This is how the blockchain technology that 11Onze will operate with works. We spoke to agent Joan Benedicto about it.
“Blockchain is a decentralised system, that allows information to be stored and processed, but it does not depend on a single entity,” Benedicto begins. Currently, however, most applications, including financial ones, do not work with this system. And so, this fact explains, for example, why when there is an error in the central server of Whatsapp or Twitter, the whole system goes down for hours like a house of cards. And this also explains how the traditional banking sector works.
If everything has to go through a single point of validation and control, the protection you can offer your customers is weaker and more hackable, Benedicto reminds us. “In contrast, a decentralised system controls the flow of information thanks to the cooperation from several points. This blockchain system has rules that make it impossible for anyone to enter and manipulate what is transmitted there,” the agent continues.
Miners, the ones who make transactions possible
Those who work to make possible the exchange of information are the so-called miners, groups of users who offer their own computing power to calculate, simultaneously and very quickly, the cryptographic code that configures each point of the network, called a block of information. When these codes are deciphered, each of these miners receives an equal reward, and the block is established and validated within the system to become part of the network with the rest.
“The cryptocurrency market is the paradigmatic example of how a blockchain system works,” observes the agent. In fact, each cryptocurrency has its own blockchain, its own decentralised system for transmitting information and movements. Some best-known systems are Bitcoin and Ethereum. “In the Bitcoin system, for example, there are many groups of miners competing to see who can calculate the cryptographic codes of these blocks first. There are five or six very well known groups”, he says.
Thus, all the information about movements that users make through internet platforms or online brokers is stored through these blocks, as if we were on a virtual stock exchange: transactions are made as in a market, but with all movements recorded within the same system and available to be consulted in an encrypted and anonymised manner. In this way, it is possible to check that no one is actually making any fraudulent transactions. Agent 11Onze explains how “it is precisely this system of shared information what makes the blockchain system so secure”. “It is more secure because there are a thousand eyes watching,” he notes.
Therefore, a large part of Cryptocurrencies’ success is based on the community, on how it monitors that everything is correct. In addition, the monopoly of money creation is broken, stops being an exclusive matter of central and private banks and, finally, it puts an end to a fallacy: physical currency is not more secure than digital currency just because it is supported by physical assets, the reason being that the amount of currency issued by private banks is much higher than the assets they actually possess.
“In terms of the decisions being taken within the blockchain, the system is very democratic. The whole structure holds up because everyone believes that the system rules, that they have created themselves, work,” sums up the 11Onze agent. The blockchain allows an entire community to sustain its economy in the cloud and no longer depend on traditional banking.
Les Peles, one more cryptocurrency
Through El Canut, our financial community will also be able to operate with 11Onze’s own currency, Les Peles. These currencies are 11Onze’s commitment to the community, which is remunerated for being trained, for sharing knowledge and interacting. It is a currency that will soon be useful to buy goods within the 11Onze marketplace, through partner merchants.
Want an 11Onze account? Order batch in Get in line. With the code we’ll give you, you can open an account on October 1st.
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