Blockchain and You!
An Easy to Follow Guide
If you are reading this, you are well versed with the hype surrounding blockchain. Well, what exactly is it?
What is Blockchain Technology?
Blockchain technology is a revelation of sorts. It has provided for a much needed revolution in the systems of record. Its nature has got imaginations running wild! They are essentially distributed ledger systems. What makes it stand out is the fact that its database is not centralized. It is divided into several parts that are stored in an innumerable number of places. Blockchain environments are not a single point of failure. Each transaction is written into this ledger to ensure no manipulation takes place. Blockchain technology eliminates the need for a middleman to sign transactions. The brightest minds in the industry are working towards incorporating blockchain into their systems and making a difference. Why do we need it though, and how can we use it?
The First Cryptocurrency
The first blockchain technology was invented by a person called Satoshi Nakamoto in 2008. Not much is known about this individual as Satoshi left around the time Bitcoin started garnering fame and acclaim. The value of Bitcoin has fallen a great degree and it is now worth around 30% of the value it reached towards the end of last year (20,000 USD in 2017). One of the biggest problems the Bitcoin network is suffering from is scalability. To put it into perspective, payment processors like MasterCard and VISA can handle a staggering 8,000 transactions per second! In comparison Bitcoin can handle a measly 10 transactions per second. Double spending, 51% attacks and selfish mining procedures do the network no good as well.
Why Do We Need Blockchain Technology?
Rather than question its need, we should embrace its significance and adapt to the changing times! As each blockchain environment operates on a single ledger, each transaction has a single version of truth. Too many cooks spoil the broth. Similarly, multiple ledgers are troublesome and do no good. While privacy and scalability concerns prevail in blockchain systems, the future holds us in great stead.
1. Distributed Systems
Blockchain environments work as a system of record. There is a single ledger and each transaction is written into that ledger.
2. Permissioned Access
Confidential information is only shared on a need-to-know basis. Each member in a network has his/her own access rights.
3. A Secured Consensus
A secured consensus is required of each member in a network. Each transaction is permanently written into the public ledger and no one can delete this.
4. Elimination of Inefficiencies
The beauty of blockchain environments is the constant desire for change. Redundant systems are eradicated and all inefficiencies in old business models are eliminated.
How Can We Use Blockchain Systems?
Watch the movie The Founder if you are looking for inspiration to start a new business or make use of existing ideas. Blockchain systems can find their application everywhere! Get your thinking hat on and look for a business opportunity you can model around a blockchain environment. Blockchain has the potential to change the very face of how businesses are modelled.
1. Blockchains eliminate the need for a middleman. All transactions are between two parties. You can earn money through your business without having to worry about a middleman. All you need to do is channel your interests and find a suitable buyer or investor.
2. Blockchain environments are completely public. No transaction can be re-written. Information can be extended but never appended. This provides complete integrity for all parties involved.
3. While everyone is raving about cloud technology, blockchain is the next big thing! Cloud systems may not be fast or secure enough to handle large amounts of information. Blockchain provides for the security we seek. Newer generation blockchain environments are working towards providing ultimate privacy while older technologies like Ethereum are implementing new methods like sharding.
4. Blockchain systems can validate any piece of information. While cloud may suffice the same purpose, implementing a blockchain structure to lets say, a voting procedure or proof of intellectual property is safer bet!
Governmental Stance
As there is no regulatory committee to govern the actions of blockchain environments, several manipulations and scams have taken place. Users must be careful when choosing an exchange to buy from or a wallet to store their coins in. Donald Trump, the President of the United States recently assigned a task force with the intention of investigating the pervasive fraud existing within the cryptocurrency scope of the country. We need regulations to ensure this gift is not misused and its use flourishes. Blockchain environments have the potential to represent the change we seek!