Technical side of the blockchain

Blockchain, simply, is a specific, widely available and decentralized database that uses cryptographic techniques and data propagation in the network as security.

Data is stored in consecutive blocks of information starting with the first block called Genesis.

Closing blocks of information takes place as a function of time using mathematical algorithms. Closed blocks make it impossible to make any changes to them, but they allow the information to be read by network users. The following blocks are linked with a unique address that can be compared to a fingerprint.

It is generated by the SHA256 cryptographic technique and is called Hash.

It contains a unique combination of 64 characters, i.e. numbers 0-9 and letters A-F. In the mathematical reality, however, each of the letters reflects a number, so A = 11, B = 12, etc., which causes that the address becomes a 256-bit IT record.

HASH is thus de facto a series of numbers.

Each block contains the Hash of the previous block (Prev. Hash) and its own (Hash), which is why it is cryptographically and inseparably connected with it.

Closing the block, and thus the data contained in it, is carried out by "miners" and the so-called "mining".

This is, of course, IT work, and it is named because of the similarity of the cryptocurrency generated during this process, which is a remuneration for "miners", to gold.

Generating a Hash for block closure requires solving mathematical formulas that must meet the appropriate requirements. This process comes down to complicated calculations, simply called "cryptographic puzzles". It engages more and more computing power, and thus generates increasing electricity consumption. For example, the cryptocurrency blockchain Bitcoin consumes electricity comparable to energy consumption in a small country.

Closing an information block must be approved by the network as a result of the so-called consensus. It is obtained in various ways. One of the most recognizable is the so-called „proof of work”.

Approval of transactions can also take place according to other protocols, such as "proof of stake", "proof of authority", etc.

Solving the puzzle for closing a block is complicated, but once a Hash has been generated for a closed block, it is easy and fast to validate the operation across the entire network.

Whoever closes the information block and receives the consensus will also receive a cryptocurrency reward. This is how it is generated.

However, not every blockchain has to generate a cryptocurrency. At IBB, we have two blockchains.

One generates IBBgold, i.e. a digital asset, which is a form of a self-executed contract between us and a registered user of the IBB website and at the same time a PRO365 subscriber.

The second blockchain generates the IBBcoin asset and, in conjunction with the e-commerce software, supervises purchase transactions, records the right to commission, calculates it and transfers it to the user's "wallet".

Both blockchains are fully transparent and each transaction generates a commission and can be viewed in shared tools, i.e. in IBBgold block explorer or IBBcoin block explorer.

The security of data stored in blocks is implemented in several ways.

It is not possible to make changes to a block without changing its Hash. Even if a block were to be hacked and any data, even the smallest ones, changed, that fact would immediately change the Hash in this and every subsequent block. This security is called the first level of security, but there is another one implemented by the P2P (peer to peer) protocol, i.e. the transmission of data from the blockchain to all computers on the network.

They are called network nodes.

The more of them there are, the safer the network and the entire database are. Even the smallest change of data in one block, through the operation of the cryptographic algorithm, will change its Hash and thus it will be immediately noted by other nodes, rejected and corrected.

Only a simultaneous Hash change in more than 50% of nodes at one time could be effective, but it is practically impossible.

The universality of the network and P2P technology is called the second level of blockchain security and at the same time defines its credibility.

In blockchains generating cryptocurrencies, i.e. assets that are means of payment or that store value, closing blocks of information is rewarded with digital currency. This is how the Bitcoin blockchain works, as well as ours - IBBcoin.

Here it is important to understand one thing - a virtual currency is an asset that can be exchanged for fiat money such as the British pound, Polish zloty or other cryptocurrencies or for some real goods, e.g. building materials.

You can also store value in it over a long period of time if the project, it is based on, has a strong business foundation.

Bitcoin has brought together people who have lost their trust in fiat money and expect new decentralized money out of government control to fix the world.

There is a huge parity of expectation, faith and speculation, and therefore an emotional values, which is why Bitcoin is very risky.

Our IBBcoin is local, based on the sale of materials in a huge, domestic, constantly developing construction market and directly reflects the real value creation.

Blockchain IBB supervises Real World transactions - it controls purchase transactions, calculates commissions, transfers them to the wallets of people who recommended buyers.

Someone has produced building materials, IBB promotes them and creates opportunities for purchase and recommendation, someone else buys these materials and eventually builds them up.

There is no abstraction here, it is an application use of blockchain technology and cryptocurrencies, guaranteeing transparent rules of network marketing, supervision and security.

The higher the turnover generated by the IBB sales network, the more IBBcoin goes to the users' wallets. The more users, the faster the value of paid commissions will grow.

The currency of IBBcoin is variabling but only increasing in value.

IBB will exchange it for fiat currency or other cryptocurrency at any time at the request of the holder. A higher exchange price will be offered by the IBB Stock Exchange, which is another very interesting element of the entire system. We are currently carrying out a verification procedure and obtaining appropriate permits to conduct it.

Please see the article that explains the principles of the Internal Stock Exchange.