Imagine the world based upon justice, transparency and openness. The world where people trust each other and don’t need no mediators while taking any actions or decisions.
This can become a reality through the use of technology you may have heard of because of the bitcoin hype – we are talking about the blockchain. But the applications of the blockchain are not limited to cryptocurrency. In fact the blockchain represents the second digital revolution and a major technological breakthrough after the Internet was invented.
With blockchain you can easily carry out any activity linked to resource distribution with all the data being well secured. When data is stored in a single database, it can be easily hacked or replaced. In blockchain nothing can be changed or replaced. This is its main advantage.
Digital recordings are bunched into “blocks”, which are then cryptographically and chronologically gathered into “chain” through mathematical algorithms and encryption. Each block is connected with the previous one and contains a set of recordings. The new blocks are always added to the end of the chain and comprises a time mark and a link to the previous block.
The blockchain has database security features determined by the technology itself. The security is provided through the decentralized server setting time marks and peer-to-peer network connections. As a result we get an autonomously controlled database. It doesn’t have a universal or general control center, which makes the blockchain a perfect technology for registering different events (e.g. medical recordings) and operations with data, identification management and source of information authenticity verification.
Main features of the blockchain technology
Decentralization – this technology implies that there is no central unit holding all the data, the information about all the transactions is stored on all the devices within the network.
Transparency and openness – each participant of the network has an access to the information.
Absence of mediators – boosts the transaction accounting and cuts costs.
What problems are solved through the blockchain?
Blockchain eliminates mediators: send your e-money from your virtual wallet to the receiver’s virtual wallet with a set of keys serving as an address. You can also send using your account number as a public key which can be shared with other blockchain network users.
All the transactions within the blockchain system are recorded and each user can browse necessary information at any time if he has the required data. With the blockchain all the information about your transaction is stored on each computer within the network, which means that any network user can control where, when, and to whom the transaction was sent. It helps to minimize the possibility of fraud and builds up the users’ trust to the whole system.
Some may call the blockchain a bureaucracy killer. Our daily life will become easier without the necessity to receive bank statements, copies of documents, and eliminating the interaction with low-rank public servants, notary officers, and other agents acting as mediators between people and government. The control from the government bodies, banks, auditors, controllers, insurance companies or registering clerks will be no longer needed.
The blockchain technology will give us transparent and fair elections, fast, simple, and safe financial transactions. It will also make paperwork easier and decrease agents’ commissions, e.g. in real estate deals.
Having the potential to improve the lives and ease the daily burden of ordinary people while making benefits for business, the blockchain technology will certainly develop. It took more than 30 years for the Internet to completely change the economy and today more than 50% of the largest-cap companies are the Internet companies. Taking the technology development pace in the modern world into account, the blockchain economy may be closer than we think.
The business that doesn’t take steps to adapt to the decentralized world of the future will soon be outdated. The employees that don’t comply with the new business requirements will be unemployed. Fortunately, the blockchain education becomes more and more popular and available with more career development opportunities.