The Blockchain Revolution
So, now that you have a basic understanding of how Blockchain works, you're wondering why and how it applies to your everyday life. Consider the attention Blockchain has received from a variety of industries, most notably the financial sector, for an answer. Despite its association with cryptocurrencies, which have been met with scepticism in the past, Blockchain has been given serious consideration in the business world. As a result, major players have funded the testing and development of Blockchain technology. Why is Blockchain gaining so much traction?
Mostly due to its immense potential. The concept of Blockchain has already had a significant impact on how software developers write new applications. It's a paradigm shift in the database world. Furthermore, it extends far beyond the realms of computing and into the realms of other industries. The internet will be forever changed by blockchain. It is the development's second generation. The same palpable electricity one senses among developers now as it was in the early 1990s when it came to expressing the potential of internet access to information. Unlike the first internet revolution, which was about access to information, this revolution is about access to value. The next step in the digital revolution is blockchain.
In the financial technology community, the development of Blockchain technologies is referred to as an arms race. It's also difficult to refer to Blockchain as a single technology because several technologies are currently being developed. Just as e-mail was not readily available and its potential was not immediately apparent, the real big thing in Blockchain technology will take time. Private businesses are competing to see who will come out on top. As the internet changed society and restructured how we interact with one another, Blockchain technologies will do the same. It is still in its early stages; at least another five years are required to get a clear picture of what is to come. One thing is certain: blockchain technology will not be restricted to the financial sector. With the right programming, Blockchain technology can be used to record almost anything that we are used to dealing with through middlemen and that is valuable to our societies: birth, death, marriages, ownership records, and some have even suggested voting can be handled through Blockchain technology.
The variety of applications for Blockchain technology is almost unfathomably large, ranging from sending money to loved ones without paying extra fees to preserving information after a physical archive has already burned down. The security aspect is emphasised by those who support investment in Blockchain technology. Trust is established directly between the parties carrying out the transaction through the peer to peer network's verification processes. As a result, blockchain removes the need for a middleman in your transactions. Rather than having a central clearinghouse to manage the ledgers, each bank has its own copy. The use of title search firms in real estate is no longer necessary. Not only does this shorten the time it takes to complete a transaction, but it also lowers costs significantly. It would no longer be necessary to go through the time-consuming process of updating everyone's ledgers individually thanks to blockchain. This not only saves time (transactions can be approved in seconds rather than over several days), but it also saves money. In the following sections, we'll look at the potential of Blockchain to revolutionise transactions from the standpoint of a variety of industries.
The Internet of Things (IoT)
The Internet of Things (IoT) concept is crucial in the development of Blockchain applications. Your everyday interactions with technology may have already exposed you to the concept of the Internet of Things. The Internet of Things (IoT) is a term coined in 1999 to describe a scenario that was only a dream at the time of its inception but has since become a reality. It describes a world in which ordinary inanimate objects are capable of network connectivity, allowing them to send and receive data. This means that devices can communicate with one another without the need for human intervention. A driverless car operating through interactions with other vehicles is a simple example of this. It can also take the form of a heart monitor that connects to a database to keep track of a person's vital signs or a security camera that connects to a database to keep track of what's going on in a home.
What does this have to do with Blockchain?
In terms of security, the Internet of Things is well-represented. People weren't sure if it would be adopted on such a large scale when it was first introduced. Its presence is now all-pervasive; smart TVs have connections to accounts containing your personal information, and consider how much personal information is accessible via your smartphone. Because privacy protection technology has not kept pace with the development of these resources, a great deal of personally identifiable information is at risk. Through the devices you use on a daily basis, hackers have access to the most personal details of your identity. As a result, blockchain offers a one-of-a-kind opportunity to address security concerns. Blockchain provides a secure, direct connection capability as well as a record of all transactions that can be used to trace an individual's identity and protect those who interact with it. Cryptographic hashes allow users to maintain control over a specific chain of interactions, preventing inverters from attempting to reverse a transaction. The hash key makes it nearly impossible to retrieve information encoded in a block without first unlocking it with the data from the genesis block.