31.8.2019 21:05 GMT+2

Why the Blockchain Technology Is the Sound of the Future

The most interesting aspect of blockchain is that it could apply to any industry where information is transferred, or records should be kept, not just the cryptocurrencies. Let's have a look at some of the future uses of blockchain technology.

What is the blockchain technology

Blockchain is a public register of data distributed between computers around the world (or a database of all transactions on the network).

Blockchain is formed by thousands of independent computers and decentralized (not controlled by a single entity).

How does the blockchain technology work

Whenever someone makes a transaction, the network is informed. The transactions are verified by nodes. Once they are confirmed they are sealed into a block, that is added to the previous blocks, forming the blockchain.

The verification is done via cryptography (the art of writing or solving codes), which means that a mathematical equation has to be solved.

Then the information is stored permanently on the network and everyone is sure about the authenticity of the records because they were verified by the entire community, which builds trust. Users can add new transactions, but can’t change previous ones.

Benefits of the blockchain technology

-transparency- everything is displayed on the network

-security - it is nearly impossible to hack

-efficiency and speed - send and receive money and financial documents in minutes

-reduced costs - no involvement of the third party.

This saves a lot of money while making transactions, unlike traditional banks.

Since the blockchain is distributed between millions of users, it is nearly impossible for anyone to influence the network, which offers security and transparency. A third party is no longer needed and the bookkeeping of transactions can be maintained between the participants.

Since third parties are not necessary, and participants can do transactions nearly immediately peer-to-peer, this is the paradigm shift that makes the Blockchain so important!

The most interesting aspect of blockchain is that it could apply to any industry where information is transferred, or records should be kept, not just the cryptocurrencies.

The features of the blockchain could innovate systems in many fields, reducing the level of bureaucracy and making the processes more transparent. Blockchain can manage the huge amount of data protecting ownership and privacy in the future.

Smart contracts are another useful application of blockchain technology. These contracts are computer programs that can oversee all aspects of an agreement, and when the conditions are met, they can be completely self-executing. The aim is to provide a higher level of security compared to traditional contracts, increase the speed and reduce the costs.

Future of the blockchain technology

Where will we be using blockchain technology in the future?

-Healthcare industry - doctors can easily access all patients' health records

-Supply chain management- every time a product moves, the transaction can be documented. This could reduce delays, costs, and human errors

-Banking - the safest way to store data and the cheapest way of transferring funds

-Real estate - the process of buying and selling land requires a lot of paperwork but with blockchain it would be much easier

-Legal Industry - the questions of legality of important documents can be eliminated

-Government - corruption can be eliminated. For instance, if every piece of property in a country is registered on the blockchain, then governments could not take land from someone just because they did not have a certain document

-Voting - voting irregularities could be minimized

-Transactions - because each participant on the network verifies the transaction, trying to hack the blockchain would be nearly impossible

-Identity - Identity theft would also be impossible. All of the personal identity information – such as passport, education, or driving license – can be saved on the blockchain

Don Tapscott has an excellent Ted talk on blockchain: “So for the first time now in human history, people everywhere can trust each other and transact peer to peer. And trust is established, not by some big institution, but by collaboration, by cryptography and by some clever code.”

Don Tapscott summarised the potential power of blockchain “ … the technology genie has escaped from the bottle, and it was summoned by an unknown person or persons at this uncertain time in human history, and it’s giving us another kick at the can, another opportunity to rewrite the economic power grid and the old order of things, and solve some of the world’s most difficult problems, if we will it”.

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Nevena Bjelic
Nevena Bjelic