What is blockchain technology and how will it change the world
Blockchain is a technology developed by a programmer Satoshi Nakamoto whose genuine personality hasn’t been recognized so far. Primarily, only a bitcoin platform was planned; nowadays, things have crucially changed, and it covers many spheres apart from cryptocurrencies. So, what is blockchain technology and is blockchain technology the new internet?
What is blockchain technology, how does it work and what for?
In brief, blockchain is an electronic register where transactions and deals data is stored. In fact, it can be used to record any data that requires checking and verifying like traffic offences, credits, marriages, heritage, and so on.
The thing that makes blockchain different from earlier electric registers is the absence of the centralized data storage. The register is distributed among the network of computers connected to the Net. Their quantity can boost up to dozens and hundreds of thousands whereas the data is accessible to all users. Nevertheless, hackers have to bother to gain control over all the computers connected to the Net in once.
What is blockchain technology from a technical aspect? Judging from the name, it is a chain of blocks containing a piece of a code with encrypted information.
The process of data encryption in blockchain is called hashing and is conducted on the network of computers due to complex algorithms. All computers perform different calculations. As soon as their results coincide a new block with a unique digital signature is built. In cannot be changed whatsoever.
These blocks go in a chronological order as a data base. Here, no one can change any element in hindsight or delete it since the chain saves all the moves.
Is blockchain technology the new internet and why?
Ex-Chief Information Officer at UBS Oliver Bussmann is credited a blockchain guru. He gives a positive answer to the question ‘Is blockchain technology the new internet?'
The expert is sure that the modern world is going through the same times in terms of blockchain as it happened to the Internet 20 years ago: those days, it was hardly accepted but currently, it is everywhere. Blockchain will revolutionize all the spheres of the human activity such as finance, state service or healthcare. Any project requiring synchronization of the big data will sooner or later use blockchain technology.
Blockchain will boost efficiency, protect the information (so that no one can fabricate it) and the system (due to the absence of the only center it withstands DDoS attacks and other ways of work distortion). What is more, this technology enables cost-effective projects since there is no need to hold and maintain the expensive central data server.
Applied in this way, blockchain can be used everywhere: in city and district administration taking Dubai as an example; in finance (for instance, a wide network of intermediaries in the system of international payments SWIFT fails to compete with blockchain in terms of cost and safety). The distributed register technology is capable of speeding the work of the banking system: Singapore has started planning integration of blockchain in banks.
Smart contracts and ICO is a different matter. The former make deals drawing and executing maximum transparent and safe. So, no one will be able to interfere, change the conditions or violate the agreement, which boosts confidence between parties resulting in the increased efficiency of the cooperation. As for the latter, it is hotly discussed nowadays. Somebody is excited about ICO, someone is hard on it. Nonetheless, from the objective point of view, ICO is a convenience method of investments attraction without exchanges.
So, is blockchain technology the new internet? There is no shortage of critics who think that blockchain and everything related to it is just a bubble that will burst and make a lot of people bankrupt sooner or later. However, recall the times 25 years ago: the Internet, Google, and eBay were considered day-flies, Amazon – large-scale fraud. Notwithstanding, you can hardly find a person who has no idea about these companies. Their contribution to the global economy is undoubted.
Blockchain will change the world none the worse. Probably, its influence will be even stronger and quicker. Currently, the technology has to be improved, it lacks the legal framework for the wide application. There are positive shifts, by the way.
One can dare say that the appearance of blockchain is equal to the Internet in its day.