17 Nov Blockchain And Its Potential Uses In Present And Future
Blockchain and Bitcoin are two separate entities. To make it clear once and for all, Bitcoin is a kind of decentralized cryptocurrency, while Blockchains are the data structures used to secure, record and validate all transactions made int his cryptocurrency; one’s the actual money, and the other’s the technology that makes it work.
And yet, while Bitcoin only emerged in the spotlight a few years ago, the concept of blockchain has been around since the 1990s, and it wasn’t until Bitcoin came along and made the world aware of the possibilities of Bitcoin. Yes, that’s right, while the original purpose of a blockchain was to secure transaction data for currency, people have found that its core concept can be worked upon to cause major revolutions in other industries too.
But first, a little about why Blockchains are so useful.
How Blockchain works and why are they so secure?
The major selling point of a blockchain ledger or database is its security; data is very hard to forge or steal from a blockchain. That’s because every time new data is to be added to the system, it must be validated by every administrator of the system, which is every single user of the blockchain system. Oh yeah, no centralized system here. Every person can see all of the data and can verify it so that the overall record is never corrupted. Not that you can anyway. Deviate even a little from the record, and the resulting record becomes so screwed up that it’s easy for anyone to see you’ve tampered with it.
So Blockchain can help us make this super secure database. Ok. But where else can they be used besides cryptocurrencies?
The potential uses of Blockchain in the future
As of now, blockchain are majorly used only for storing decentralized ledgers for cryptocurrencies, but with the research that’s happening now, we could be seeing some major developments in the following fields:
Even though we would love to believe it was not so, our data stored with companies we do business with over the internet isn’t all that safe. There have been cyber attacks on centralized systems over the past, leaking customer’s data to hackers. But with the application of blockchain and the higher level of security, they provide all of this could change that. Our data would be more secure than it could have ever been, and it would all be thanks to implementing the blockchain concept in all our record systems.
(Further) Revolutionizing the financial system
The introduction of bitcoin and other currencies that don’t require a bank or country as intermediaries made big waves in the financial system when they were introduced, but at the pace, we’re going with blockchain technology we may be looking at even bigger changes. Since a secure public ledger means there is no need for a third party to supervise financial records or assets, we could be looking at faster, more cost-effective systems. Take the mortgage industry for example: By applying a blockchain to record all transactions of the land (and other data heavily reliant on trust and accuracy), we would be closing mortgages faster, cheaper, and with considerably higher degrees of trust.
Secure internet, an attainable reality
In today’s world, the majority of all cyber attacks on your computer happen over the internet. Hackers looking to infiltrate your computer prowl the web searching for innocent victims, emails with infectious add-ons make our lives miserable, DDOS attacks causing havoc for companies, and spam filling up our mailboxes by the hundreds every day. However, implementing a blockchain to make our data and our connections to the internet more secure could potentially solve all of these problems since a blockchain is based on cryptography and is designed to be impossible to infiltrate; that’s why no one has been able to hack one in over ten years now.
Ever been lulled by a scam into blowing away a large sum of money. A lot of people have since fraud, and false advertisements are so rampant in our online world today. However, it would seem it is the authentic advertisers who get the short end of the stick; scammers and fraudulent advertisements have made people wary of digital advertisements, and they’re now less likely to respond positively to authentic ones, which hurts sales. But the implementation of a blockchain system here would win the public’s trust back since the security it provides would return confidence to people who would now be more receptive to authentic advertisers, since they’re the only ones that’ll be left. This would in turn also better customer experience since there’d be no more false advertisements to worry about. Meaning you can shop freely and without constantly being worried about being scammed.
One of the biggest reasons why we don’t see a lot of self-driving cars out on the roads today, even though they’ve been around for quite a while now, is the fact the makers can’t guarantee the security of the systems they operate on. The government is afraid of hackers taking over the cars driving system and causing tremendous damage on the roads, and companies can’t as yet guarantee against the possibility. But with blockchain and the security they provide, they might be able to pull it off shortly.
There’s a lot we still haven’t figured out and still more we could do with blockchain besides everything that’s been mentioned above. It’s true, however, that blockchain is still emerging technology, and there are a lot of kinks to be worked out before any of what is said above becomes a reality. But it would seem, for now at least, that we’re on the right track.