If you’ve been following the hype of the upcoming big thing that’s going to replace the traditional financial system of today, you know all about the new technology called “Bitcoin,” or better known as “blockchain.” If you don’t know much about this exciting new technology, you’re missing out on one of the best advancements in the history of the Internet.
Basically, blockchains are a form of distributed database. There are multiple databases linked together that all contain a shared central control panel called a “distributed ledger.” What this means is that it will allow all of the users of these blockchains to interact with one another without having to trust each other first. This makes it very safe, especially when you consider the current banking industry.
The big advantage of the distributed database is that it allows you to have access to the entire history of a certain transaction, making it incredibly reliable. This is an incredibly good feature for anybody who wants to conduct business online, whether they’re buying or selling anything. This can be extremely valuable information when it comes to running a legitimate business, but it also provides the same service for people who want to buy something on the Internet anonymously.
For example, if you buy a product over the Internet and don’t want the company to know your true identity, you can use the anonymous transactions to buy the product without giving them any clue. This is where the use of brainwallets comes in. They enable you to use a series of numbers that are used to prove who you really are on the Internet.
This process is very convenient for people who want to run an online business without giving away too much information, but there’s a drawback to the use of brainwallets. These numbers can only be used once. When you use them again, you lose the secret number, so you’re not able to take advantage of anonymous transactions again.
Luckily, there’s an option for brainwallets called a “BIP.” A BIP is short for “key-value pair,” and what they do is provide you with a set of numbers, which you can then associate with each other in order to create your private and public key. This private key is what you give out to people on the Internet in order to make transactions and make transactions. Once your private key is associated with the public key, you can use the BIP to make anonymous transactions again, so your identity remains hidden from anyone who knows your private key.