I’m writing this post because I want to know more about blockchain technology, and I know you guys might want to know more about it also. It’s so new I’m still a little confused about what it completely entails and what exactly the big deal about it is. So, in writing about it, maybe we’ll all learn something new about it or get clarification on what it does. Let’s dig in!
What is Blockchain?
As we all know, blockchain was first created to help support Bitcoin. But many more benefits are being found to support other technologies as it’s so secure. It’s very difficult to change anything that enters blockchain, so it makes it one of the most secure methods to be able to store any type of business transaction. Only people allowed to use the system can get in to do any kind of modifying of information stored there, creating a workspace for trusted staff. The blockchain is creating an environment that is for the most part safe from malicious intent.
Look at how Google Docs / Sheets works. Instead of using the traditional method to change documents through sending an email and then having to wait for the edits to be done, with Google Docs and Sheets many people can work on documents at the same time, with the original visible to them through the entire process. It makes such an easier work environment for everyone.
Durability and Robustness
The robustness is built into blockchain. Because it stores blocks of information across the network, it can’t be controlled by single entities and doesn’t have a single point of failure. For example, when Bitcoin was invented in 2008, it operates without much disruption besides of hacking attacks and mismanagement. In other words, the only problems blockchain is having is from human actions alone, not from programming.
Transparency and Incorruptible
It automatically checks itself every 10 minutes, completing self-auditing actions at that time. Those transactions are the blocks of information that was just mentioned in the last section. This creates transparency data that are embedded in the network, therefore making it all public. Because of this, it makes an environment that’s next to impossible to corrupt. Changing any block of information kept in the network requires a huge amount of power. It needs the power to override the entire network.
What’s the Network?
The network is comprised of a bunch of nodes, or computers attached to the network using a client. The client validates and relays transactions, then transfers a copy to the blockchain, downloading it automatically when it reaches the network. This creates a second-level network, changing how the Internet works. Each node joins voluntarily, creating a decentralized community. What decentralized means is that the network involved works peer-to-peer, creating an environment of collaboration.
People Who Will Use it
Financial gurus due to all the money transfers occurring online. It’s being investigated for other industries, but this is the only one that uses it now.
Will it Create a New Web 3.0?
This provides Internet users another way to create value and verifies digital information. Possible new business applications that can come from this are:
- Smart Contracts
- Sharing Economy
- Supply Chain Auditing
- File Storage
- The Predicting Market
- Protecting Intellectual Property
- Internet of Things
- Neighborhood Microgrids
- Managing Identities
- Data Management
- Anti-money Laundering and Know Your Customers
- Land Title Registration
- Trading Stocks
There are so many opportunities for using blockchain for business. It sounds like it can be pricey to carry out though, based on what Bitcoin uses to run its platform. The good news is that research is being completed on how to better blockchain so more agencies can take advantage of all the advantages that it provides. Hopefully, something is found soon, plus improving energy consumption so more can take advantage of it.