The invention of the internet is not limited to, email or social media, in fact, over years Internet represents one of the most successful examples of disrupted technologies in shaping the business like big data, the cloud, IOT, robotics, or even artificial intelligence.
For many Blockchain technologies still remain complex, but the idea behind is too simple-a universal ledger database shared with the world. Blockchain technology introduced many new avenues for communications, human interactions, financial services, good governance and so on. With Blockchain, we’re seeing the new world moving forward, for instance, we discover a positive shift in the capitalist world, every asset, whether its euro, dollar or bitcoin we move now because of Blockchain will have more accountability and transparency.
What is Blockchain?
Before you read further and agree with me, for who doesn’t know what blockchain is and how it runs short, here is the quick introduction to the technology. Basically, blockchain is a universal open source ledger, a database that builds bitcoin peer to peer network. This database is f the information infrastructure we use and rely upon today. These ledgers are centralized (control by one company) and closed (only societies who own ledger/data make entry to such ledgers) and interoperability still remains a challenge with current ledgers.
Suppose I have to transfer money to my friend in Singapore, then either I can choose Internet banking or PayPal. In our first case of internet banking, the successful transfer takes place only when we both have a same company bank account. It’s not possible for my HSBC bank in the UK to achieve entry into Bank in Singapore account ledger for such transfer, therefore we will be needing an intermediary like PayPal or transfer wire. Even in this case, we both need to have accounts with PayPal and I cannot send money to transfer from my PayPal account as we both need to have accounts with PayPal or transfer wise. Further beneficiary needs to pay PayPal or transferwise commission for sending back money to the bank and generally the process takes like 2-3 days in all. On the other hand, with Blockchain technology the entire process can be done in seconds by replacing centralized closed ledger into decentralized universal ledger on the open network and anyone can access and remove the money without intermediaries like PayPal or transferwise.
Why should I trust Blockchain?
The Blockchain Universal ledger database can be read through Google Excel spreadsheet one we share with your colleagues or friends. The copy of Google spreadsheet remains a replica of your spreadsheet on other computers too, and if you gave permission to edit and further share, your colleagues can also delete or edit columns in a spreadsheet. So, every time someone changes spreadsheet it changes everywhere and all your fellow workers will see the updated replica of a changed spreadsheet. In Blockchain this spreadsheet is shared with everyone in the world and everyone holds a copy of the same spreadsheet and anyone can access the same spreadsheet. But in Blockchain, no one can edit or delete the old entry or reference in a spreadsheet, one can only add new rows and give old reference to do transactions. In Blockchain ledger, it’s impossible to change/delete an old entry because of these reasons.
Suppose if you moved $2000 to your friend on 17th Jan 2017, you add a new row in Blockchain ledger + $2000 to your friend and – $2000 to you. Later, let’s say on 31st July 2017 your friend wants to pay you back, then your friend has to add a reference to old entry i.e. 17th Jan 2017, and then only your friend can send you $2000, thus if there is no old entry about you break him/her $2000, your friend cannot send you money. In Blockchain it’s impossible to modify the previous entry or delete even by honest user that makes Blockchain unique where everyone has access to the ledger in the Blockchain network but only the honest user can only edit with old reference.
Another reason is Blockchain’s resilience to the centralized ledger system. The centralized system has single point ownership and single point failure, because of the Blockchain universal distributed ledger where every transactions record not only at one space at one time. Blockchain totally eliminate the prospects of single point failure, also it’s transparent, faster, it’s impossible to hack.
In block chain, to replace or edit any universal ledger, one has to edit or delete all the replica of the universal ledger on all the world computer writing at some point in time or double the whole network all at once. This is almost impossible to achieve at the scale Blockchain has now evolved. As an effect, block chain is believed to resist fraud and hacking. Blockchain makes possible to transfer money from one person to another person without internet bank or intermediaries like PayPal. All you need is a computer and Blockchain network and you shift money in seconds and save transaction fees on such transfer. Blockchain technology allowed you to transfer the assets on peer to peer lending.
So Blockchain is all about money? Not really!
Blockchain does other than simply sending money as virtual currencies. One of the reasons Blockchain community is excited about Blockchain technology is due to an open software program based on Blockchain technology that enables developers to build and deploy decentralized applications. A smart contract on Ethereum eliminates all middlemen.
The Blockchain technology makes same problem autonomous. A Smart contract saves time and ward off conflict by mutually agreed terms to be reached through code into the Blockchain. Suppose you wish to purchase a house from a man, you set up the contract on the Blockchain maybe in Bitcoin (BTC) or ether or Singapore dollar. Now Blockchain holds your money in escrow, while the registration papers or other formalities arrive from the seller (private key) and in case if the ‘key’ doesn’t arrive before the termination date, then as per condition that you both agreed in the Smart contract your money is refunded back to you with automated processes.
Blockchain doesn’t only work out financial transactions instead it offers millions of possibilities, like copyright infringement, notary services (Estonia Govt. Has already espoused the same), Voting with Blockchain on valid digital identity. If your state registry adopts Blockchain based ledger for recording every property documents registration in the state, then it’s impossible to fake property documents. Blockchain not only gets rid of intermediaries like PayPal and banks, but other aggregated models like Uber, foodpanda etc. and restores incentives directly to the community.
With no doubt Blockchain is young and evolving and we need to exercise a lot of developing on protocol & application front, data privacy. But we also need people to trust Blockchain and virtual currencies because that’s going to be future and it’s giving way to change everything around us. We need people to come forward and volunteer into it as the universal ledger so far has proven to be the best security system when it comes to your financial data system, privacy and transparency.