Blockchain technology is a kind of database which you can say is a distributed database. It can manage the infinity number of databases and act as an electronic recorder that records all the transactions. Each transaction is called a block and each block has information that refers to the previous block. That’s why they call it “Blockchain” because once the block is created, no one can change the information inside it from any party from the transaction. You can use it also when you need to make a transaction while recording information you don’t need for third party, the fastest process to store data, that technology can do all the transaction you think about it, from the transfer of funds to the transport of goods and property, their uses are unlimited.
The idea behind blockchain technology was described since 1991 when scientific researchers Stuart Haber and Scott Stornetta offered solution to practical computational seal documents to be safer. The system used a series of secured encrypted blocks to store time-stamped documents. In 1992, Merkle tree was merged into the design, making it more efficient by allowing multiple documents to be combined into a single block. However, this technology went unused and the patent expired in 2004, four years before the start of Bitcoin.
Blockchain Features:
If the blockchain is just a new technology that is used to manage and record the transactions, and store data, why are there lots of people so excited about this technique?
1- Safety:
Nowadays there is a lot of hackers and data thieves, especially after the big event of hacking of several Facebook accounts. So now you need to think twice before recording your data anywhere and try to protect it. One of the major benefits of blockchain is high safety and reliability. That’s to say, it’s more secure than the regular protection like username and password.
2- Decentralization:
Blockchain is decentralized. Most Blockchain operations from buying, selling, trading, and other transfers depend on a set of pre-determined conditions and terms between the parties. There is no censorship, which means that it doesn’t need the third party. It’s a digital process that no one can see because it’s transparent.
3- Effectiveness and speed:
Entering data manually is very boring and may cause lots of errors while processing the action. Just imagine how many typo errors that you do normally while writing an e-mail especially when it's an official e-mail to your professor or manager. It'll be awkward for you, right?
But when the data becomes more sensitive, such as wages, working hours, or hospital data, it will be more complicated in that it will require a longer time to check and review it again.
With blockchain, all this information is stored and verified when it is obtained directly. For example, it may take up to a week to purchase a simple stock and check if the process is correct, there is no need for third-party verification because all the information needed to complete the sale or purchase is included directly.
7 Uses of Blockchain technology
1- Cryptocurrency:
Cryptocurrencies, such as bitcoin and other cryptocurrencies, are one of the most popular blockchain applications. Cryptocurrencies may have been responsible for presenting the blockchain technology at the beginning, as it’s a form of digital money which has high security for use in our daily financial transactions.
2- Smart Contract:
Smart contracts are one of the most popular applications that play a good role in blockchain technology. The smart contract is generally used to automate business processes, payments, and transactions. People are excited about this technique because they save a lot of effort, time, and costs to implement the same tasks we used to do before, but with less effort.
Although the users for smart contracts nowadays are less, the demand for this service is expected to increase as the volume of cryptocurrencies worldwide increases. There are many uses, such as buying, selling propertied and transferring them easily between the parties.
3- Monitor supply chain:
Blockchain also plays an important role when it comes to monitoring the supply chain. Blockchain would allow businesses, and possibly even consumers, to view how products performed from a quality-control perspective as they travelled from their place of origin to the retailer.
4- Retail loyalty rewards programs:
Blockchain could further revolutionize the retail experience by becoming the go-to for loyalty rewards. By creating a token-based system that rewards consumers, and storing these tokens within a blockchain, it would incentivize consumers to return to a certain store or chain to do their shopping. It would also eliminate the fraud and waste commonly associated with paper- and card-based loyalty rewards programs.
5- Digital IDs:
More than 1 billion people worldwide face identity challenges. Microsoft (NASDAQ: MSFT) is looking to change that. It’s creating digital IDs within its Authenticator app, currently used by millions of people, which give users a way to control their digital identities. This would allow folks in impoverished regions to get access to financial services, or start their own business, as an example.
6- Digital voting:
Blockchain offers the ability to vote digitally, but it's transparent enough that any regulators would be able to see if something were changed on the network. It combines the ease of digital voting with the immutability (unchanging nature) of blockchain to make your vote truly counts.
7- Real estate, Land:
One of the primary goals of blockchain is to take a paper out of the equation since paper trails are often a source of confusion. If you're buying or selling land, a house, or a car, you'll need to transfer or receive a title. Instead of handling this on paper, blockchain can store titles on its network, allowing for a transparent view of this transfer, as well as presenting a crystal-clear picture of legal ownership.
And now to the last question that everybody asks themselves when they hear about Blockchain. Should we worry about our business and economic activities with Blockchain technology?
I don't think it's time to worry yet, but you certainly have to be careful and watch the blockchain closely. Industries, as well as major technology companies and businesses rely on blockchain in their dealings. You should know when to take your golden opportunity.
