Blockchain Revolution has Started
- rohan hall
- Oct 3, 2017
- 0 comment(s)
When you purchase a “fair trade” products do you ever wonder about the real origin of the product and if the workers, often in emerging companies, are getting fair compensation? How do you know the real origin of these products?
With the constant hacking of centralized servers like the recent hack of Equifax, do you get concerned about your personal data that you entrusted them to protect? Do you get concerned about identity theft? How do you know that your personal data is safe?
With the vast amount of trust that we give to banks and the financial industry, are you concerned that we may have a repeat of the 2008 financial melt down? How do you know that that this will not happen again … soon?
We’re finding more and more uncertainties that the trust given to companies and institutions are well deserved.
To be really certain that we’re protected we need a system that guarantees security of our data; that facts can be verified by anyone at any time; and that cannot be cheated or hacked or abused by the very central authorities tasked to manage these systems.
Systems like this are currently being developed. The software that powers this new generation of technology is called a Blockchain. Blockchain uses a network of computers along with complex cryptographic algorithms to ensure your data is secure. Because it’s decentralized the system is not owned or managed by any central authority, company or individual. Everyone can use the system and help to run it. This is an important feature because it means that there is no single point of failure. It cannot be easily taken down, corrupted, or hacked.
The system is a network of computers that bundles transaction records that are submitted by others known as “blocks”, as a chronological chain. Using cryptography and complex math, the blockchain network ensures that records are permanent, secure, and cannot be changed, hacked or counterfeited by anyone else.
The blockchain is a foundational concept. This means that different technologies will be built on top of the blockchain protocol to enable a variety of capabilities that we currently do not have. The first such app is called Bitcoin. Bitcoin is a digital currency that can be sent to anyone, any where in the world, within a few minutes. For example, if you would like to send US Dollars to France via your bank today it would take about a week and would include huge fees. This is because of an antiquated banking system and middlemen in the process. With bitcoin you would be able to do the same transaction within a few minutes with a very small to no fee. You can send funds to anyone in the world within minutes, even to someone that you don’t know.
Bitcoin is different from normal fiat currencies, different than paypal, different from credit cards. A primary difference is that there is no central authority or middleman that can be hacked or compromised. The entire network is managed by “miners”. Miners are people all over the world with computers that are financially incentivized to validate every transaction within the blockchain network. Because the network is decentralized and distributed it’s very difficult successfully hack compared to having one central company, bank, servers, or authority that is very easy to hack or penetrate.
There are also other apps that are making a difference.
Ethereum is an application that makes it easy to develop “smart contracts”. Think of a contract in the current world that requires a middleman like an attorney or a notary to negotiate and develop the contract because of lack of trust between the parties. Where ever there is a need for a contract between multiple parties where there is no established trust, the Ethereum blockchain can be used to create self executing contracts. For example: if two parties creates a contract that Party A delivers a services and Party B must pay a fee once the service is delivered, this can be done via a smart contract with no middlemen.
Blockchains applications are also being delivered to enable validated real estate ownership, safer autonomous self driving cars, artificial intelligence communication with internet of thing to make billions of devices autonomous and intelligent, protect our identity from identity theft, ensure proper payment of people in global supply chains, help unbanked people to participate in a global financial market.
These and other major innovations are only the tip of the iceberg of changes to come from blockchain related innovations.
It’s time to start learning and to get involved. To learn more about blockchain, improve your education, enhance your technical skills, understand how this new paradhyme affects your industry and your future please have a look at the various courses offered by 123Learn.co.
The blockchain revolution is just beginning. Get involved. Become educated.