What is the Blockchain and why it is the Perspective Future of Technology?
Shortly, a blockchain is a decentralized, public shared database or ledger. The first time concept was implemented in 2009 by Satoshi Nakamoto as part of the digital cryptocurrency Bitcoin. Bitcoin and its blockchain technology were the first digital currency to solve the double spending problem (ensuring digital money non-duplication).
At the same time, physical coins or tokens and electronic files can be duplicated and spent twice. So, in this case, the problem is solved by implementing a central and trusted third party to verify the transactions. Meanwhile, blockchain technology gives a possibility to eliminate the “middleman” by recording transactions, establishing identity, and establishing contracts.
Is it safe?
The security of a blockchain relies on two aspects: the structure of the blocks and the peer-to-peer network that maintains them. In the blockchain, each new block adds to the chain in a linear, chronological order. Once data blocks have been added to the blockchain database, they can not be changed or deleted and stay there as long as the blockchain exists.
Consensus mechanisms verify blocks and eliminate fraud transactions and prevent hacking. Financial-grade public key encryption protects access to the database. So although the peer-to-peer network is available publicly, there is no access to any identifying user information. This technology helps Bitcoin and other digital currencies maintain privacy and security while having a public, decentralized ledger.
Blockchain can be helpful not just in financial or cryptocurrency but in many other fields. Many are finding blockchain value and trying to use its ability to improve old systems. Here are a few areas in which blockchain technology would be very useful and why.
In healthcare, security is one of the top priorities. In the medical industry Blockchain technology can be successfully applied in many ways. This technology operates using decentralized consensus. It means that all the parties involved in the blockchain must agree on how data is verified and recorded. It could help reduce costs and create new ways for patients to access healthcare easier and safer.
Voting and Public Policy
Also, this kind of system can be extremely useful in the voting process. The voting process seems to like stuck in the last century.
The necessity to bring voting online is obvious but, so far, has not been used, because it is difficult to put faith in results due to security gaps. So blockchain technology can be the solution to make voting possible online. Online voting would increase the number of voters and minimize costs.
Creating a piece of music, a work of art, or a design takes time, money, and talent. So the creator likely wants to protect ownership rights.
The block’s data can store the original copyright data. Implementing Blockchain allows for a tamper-proof chain of evidence for copyright ownership and authenticity. Along with being tamper-proof, it provides a way to trace the owner of a work.
From a business perspective, it’s helpful to think of blockchain technology as a type of next-generation business process improvement software. Blockchain technology lets to improve processes and lower “trust cost”.
Also, it is well suited to improve the supply chain. This technology would help improve traceability. Because it would provide the ability to track goods as they move in real-time.
Overall it is important not to confuse blockchain with Bitcoin and cryptocurrency. While Bitcoin uses a blockchain, blockchain is not Bitcoin. Also, it is not just a technology but a new way to think about data. Then you start thinking about your future applications and business processes, don`t forget to keep the blockchain in mind.