What Is Blockchain Technology And How Will It Change The World?
We have all been hearing about the investments in cryptocoins and how revolutionary this new economical aspect is to the modern economy, while it seems than people are increasingly getting involved. But firstly, what is actually the Blockchain Technology? And secondly, will it change the world? Be patient and learn more.
Innovation is the number one step towards evolution. Once people set their mind on innovation, the world will achieve a lot more. Blockchain technology, as in an article of Forbes is explained, is the technology that uses a platform to store and transfer sensitive data you do not wish to disclose to intermediary parts, which can be both public and private.
As an example, the databases used by many companies are owned by other companies, thus when you write your bank details, the latter will have access to them. People stopped trusting these databases, thus the Blockchain Technology was born.
Of course the needs of such a technology are many more than just this one, but for the sake of emotional impact, this one was stated before others.
In other words, Blockchain Technology was invented to help people maintain their privacy when needed.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Don & Alex Tapscott, authors Blockchain Revolution (2016)
To use an analogy, the blockchain technology uses a platform that duplicates thousands of times across the computers which use it, and it is regularly updated and it is never centralized. It is like a lot of data which is kept transparently and inaccessible to hackers.
The one that enters this network is a node which becomes an administrator as well as the others who also join the network.
To explain it even more, imagine the process of sharing data of any kind. At the moment you share a document with someone, or you make a transfer to the bank or so on, that document will be available only to the person who needs to edit it.
Blockchain technology allows the people who are involved to have the same access at the same time. Nothing complicated, right? And another need to create such a technology was that the traditional databases are using requests to change, edit or do anything else from the relational tables they use.
Since Bitcoin was invented in 2008, people started to link blockchain to the cryptocurrency. However, Bitcoin is the coin, and the blockchain technology is the one that allows Bitcoin to travel and be exchanged. Since it was invented, its blockchain has operated flawlessly, except the times when people have tried to disrupt it.
“As revolutionary as it sounds, Blockchain truly is a mechanism to bring everyone to the highest degree of accountability. No more missed transactions, human or machine errors, or even an exchange that was not done with the consent of the parties involved. Above anything else, the most critical area where Blockchain helps is to guarantee the validity of a transaction by recording it not only on a main register but a connected distributed system of registers, all of which are connected through a secure validation mechanism.”
How does the blockchain network manage to keep its integrity intact? It is automatically checking itself every ten minutes and reconciles the transactions that happen in between these checks. Such a period of time, between checks, is called a ‘block’.
Thus, everything is public and hard to hack. To do the latter would mean to both enter the network and at the same time to destroy the value of the transactions.
“I think decentralized networks will be the next huge wave in technology.”
Now that we have finally understood the basics of Blockchain Technology, will it change our economical current situation or not? As Goldman Sachs states, this new technology may be able to reduce our wordly expenses in terms of transactions and all with up to $6 billions per year.
That is a huge amount of money that is spent for intermediary parts.
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Since it was first invented, people have gained a lot of interest in it, and they are not only investing in Bitcoin, but they are also willing to discover more and more about the possibilities that are raised along with this technology. Imagine the outcomes!
The outcomes are the business application which can easily use it, such as:
- Sharing economy, as you will not need a third party to make the transactions
- Governance, by inspiring transparency to elections
- Protection of intellectual property, while protecting your privacy
- Identity management
- Stock trading and so many more
The vast extent that would be possible to host this innovation will definitely not be known if people do not take advantage of it. Therefore, is Blockchain Technology going to change to world? Definitely so, if people will know how to handle and explore it in the best way possible.