Blockchain technology is one of the most revolutionizing invention. It has been claimed to be as significant to the internet or electricity. Unfortunately, few have heard of it, but massive media coverage is helping. Blockchain is one of the most promising new technologies for the future. It’s a distributed ledger technology that underlies Bitcoin. Providing a new way to record and transfer data. Even more notable is the transparent, and safe data that is auditable, and resistant to outages. Blockchain gives the power to individuals working together giving them the ability to make organizations more transparent, democratic, decentralized, efficient, and secure without government intervene.
In this article we will try to explain the technology in simple plain English and avoiding complicated it. Topic that is going to be discuses:-
• How does Blockchain and Bitcoin technology work?
• Blockchain Interference with Banking and Payments.
• Blockchain can create a secure decentralized network for IoT Devices.
• Blockchain will change how we ride and transport goods in the world.
• Blockchain is Redefining Data Storage.
• Blockchain can enable accurate Voting Systems.
• Blockchain has the potential to make our Governments Truly Democratic.
How does Blockchain and Bitcoin technology work?
Process 1 - Transaction Two parties, A and B, want to exchange a unit of value (cryptocurrency or digital representation of some other asset like a title, birth certificate, degree etc.) and initiate the transaction.
Process 2 - Block The transaction is packaged with other pending transactions thereby creating a “block.” The Block is sent to the blockchain system’s network of participating computers.
Process 3 - Verification The participating computers (called “miners” in the Bitcoin blockchain) evaluate the transactions and through mathematical calculations determine whether they are valid, based on agreed-upon rules. When “consensus” has been achieved, typically among the 51% of participating computer, the transactions are considered verified.
Process 4 - Hash Each verified block of transactions is time-stamped with a cryptographic hash. Each block also contains a reference to the previous block’s hash, thus creating a “chain” of records that cannot be falsified except by convincing participating computers that the tampered data in one block and in all prior blocks ever created is true. Such a feat is considered impossible.
Process 5 - Execution The unit of value moves from the account of party A to the account of party B.
That can be demonstrate below as example:-
Blockchain Interference with Banking and Payments .
Blockchain technologies can be used to provide financial services to billions of people around the world in 3rd world countries who don’t have access to these financial services. And that will element the role of the banking system is the main source for individuals to conduct transaction, moreover; there are a lot of people they arrived as a refugees to Europe, USA, Canada they could not obtain documents to be able to work, by using this technology they will be able to send Bitcoin which the value of the bitcoin is going to be converted to real money to their family without any problem with low fees.
Blockchain can create a secure decentralized network for IoT Devices.
Samsung and IBM want to create a decentralized network of IoT devices using the blockchain. Operating like a public ledger for a large amount of devices it would eliminate the need for a central location to handle communications for IoT devices.
Devices could communicate directly to update software, manage bugs, and monitor energy uses.
- Builds trust between parties and devices.
- Reduces risk of collusion and tampering.
- Cuts costs by removing overhead associated with intermediaries.
- Shortens settlement time from days to near instantaneous.
Blockchain will change how we ride and transport goods in the world .
Blockchain can be used to create decentralized business allowing both parties whom there are trying to close a deal in buying/selling goods to arrange terms and conditions in a secure way without 3rd party providers. The use of built in e-wallets will allow business owners to automatically pay for for there goods .
Blockchain is Redefining Data Storage.
Data on a centralized server is inherently vulnerable to hacking, data loss from outages, and human error. Using Blockchain technology allows cloud storage to be more secure and robust against attacks. Storj.io is a Blockchain startup focused on creating private and encrypted online storage all based on Blockchain technology.
Blockchain can enable accurate Voting Systems Political elections are almost always corrupt.
America’s 2016 election was not the first time both parties accused each other of rigging the election results. Blockchain can be used for voter registration, identity verification, and electronic vote counting to make sure all votes are legitimate. Creating an immutable, publicly-view able ledger of recorded votes would be a massive step in helping elections more fair and democratic.
Blockchain has the potential to make our Governments Truly Democratic.
Government systems are often slow, opaque, and prone to corruption. Implementing Blockchain systems can greatly reduce bureaucracy, and increase security, efficiency, and transparency of government operations. Perhaps one of the most important things about bitcoin is it’s ability to stop war in the way we know it today. Today we live in a world with governments that completely control their fiat currency and choose to print as much of it as they want at any time, Governments then use that money to build all sorts of tanks, bombs, airplanes to murder people all over the world. If you think about it, that’s what war is. It’s a group of people who go murder other people who they’ve never met and don’t know anything abut because another group of strangers in Washing DC told them to do it. This is all being paid for by printing money. However, with bitcoin and other cryptocurrencies there’s a limited supply, that sort of things can’t happen in the world if everyone is using bitcoin. Blockchain based currencies will prevent governments from being able to print money at will and then use that to buy guns to murder people around the world.