After the 2008 global financial crash, Satoshi Nakamoto came up with the concept of a peer to peer financial system, Bitcoin, to replace the fragile financial institute that is inherently weak and controlled by an institute that can easily be corrupted . He believes that the Cryptocurrency could replace this as a stronger form of currency that will always be able to deliver and unable to 'crash'.
(you can read this revolutionary paper here;- https://bitcoin.org/bitcoin.pdf)
The system that was invented to make bitcoin a reality is called Blockchain, as described in the paper.
Blockchain is the underlying system behind bitcoin and Ethereum, but the possibilities and uses go far beyond this. in simple terms, Blockchain is a constantly updated record of who has what. Each record is split into link-blocks and then stored using sophisticated encryption, this is to ensure that all users can be sure that the records are accurate, also known as 'Automated Trust', trust that is automaticity built into the system. The list of these records called, 'a distributed ledger' is de-centralized and is available to everyone, doing away with financial corruption that Banks are well known for. The Link-chain system is un-hackable, because of the peer to peer and distributive nature, if one record is tampered with, the rest of the system knows and that record is rejected.
Blockchain has potential way beyond cryptocurrency and 'will' be nothing short of revolutionary.
As with ever evolving systems and technology, Blockchain is he next step of the internet. Incorporating Social web, cloud, AI, data storage, mobile, content, connecting, security, voting and much more. Cryptographers take double spending as an example, you pay for a car and hand over £10.000, but because of the current digital copy the internet is based on, that £10'000 is still in your name. Hence the problem, this transaction should only have 1 unique identity, that's where Blockchain steps in. Now for the first time since 1983, the internet is starting to have real value. And this is what is making banks and governments around the world nervous. Once the banking system is replaced by Blockchain, they loose the ability to corrupt and ultimately any financial power.
A Digital currency Lawyer called Dr' Adrian came up with the acronym FITS as to how Blockchain can be applied to everyday use and eliminate problems.
Fraud
Intermediaries
Throughput
Stable Data
We can all agree fraud is a huge problem, Blockchain could reduce and potentially be eliminated. This is why some international transactions are now using the Blockchain system
If you shop for a new car or want a plain ticket, you usually have to deal with the 'middle man'. If this doesn't have any value, it can just be eliminated on the Blockchain system. So basically transactions that take 3-5 'working days' could be reduced to as little as 10 minuets.
At present, throughput or the number of transactions for Blockchain is limited to 10 per second, while big banks are at 8'000 per second, but researchers are upping that 10 to 400'000 per second using de-centralized computers using a 100 computers on the peer to peer network to do the processing power., making Blockchain more efficient and powerful.
Data is volatile and constantly changing on the web, but stable data would mean that data that is not likely to change over a period of time such as land ownership, car vin numbers, house ownership, business names personal information would be ideal for a Blockchain application.
Today the Blockchain is being used for land registry in Sweden, diamond records in Africa to to stop the distribution of blood diamonds, several banks world wide are working on a crypto currency and integrating their existing system with Blockchain for international transactions. Even Microsoft is on board using the Ethereum Framework bit miners love.
Steemit and Dtube, competitors for Reddit and YouTube, is a Blockchain based system. We even get paid for creating posts like this, the more we interact on these sites the more cryptocurrency we can earn. And I believe to be the future of social media.
Blockchain could go a lot further with 'decentralized autonomous organisation'. You tube and faceache are almost there, they have a traditional hierarchy but with decentralized content.
Today if you wanted to buy a house, you would have to go the the estate agents, make sure the building was OK with no problems, you would sign a lot of paperwork. Hand over the money, wait for the paperwork to be processed and then get your keys. And can take a week to months.
In the future with Blockchain using the decentralized autonomous organisation to create a 'smart contract' the transaction and ownership process would take minutes and would be a fraction of the cost. No more paperwork, automated remittance and remove the 'escrow' altogether. The house details of the house are readily available and is always up to date. Buy the house with cryptocurrency and transfer of ownership is carried out in real time. So everything would happen in minutes. Your ownership of the house is now attached to your Blockchain personal stable data, and the entire system is updated so everyone on the Blockchain now know the house belongs to you.
You could also incorporate a system like Uber, so everything is linked up and done automatically, with systems for ratings, customer satisfaction, service, etc.
Companies such as google, amazon, Facebook, twitter, ASOS have all used the internet as it stands to their own advantage. Now greed and the need for 'want' unfortunately is part of human nature. In the next phase of the internet, Blockchain, will help towards stopping the accumulation of wealth and to stop withheld information that governments, institutions, banks, conglomerates like to do, so everyone can benefit from this new technology not just the greed of several people.
It is the way forward, and I am glad to be among the first to be using this tech and making sure others know about it and to bring them on board too.
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Hope you enjoyed reading.
@TechMojo
