What is Blockchain?
Blockchain technology is currently making waves across many different industries that rely on the transfer of digital assets and information. It’s set to be one of the most disruptive new technologies of recent times and will cause massive changes in many different industries and markets.
Oi, what's blockchain?
When people send digital assets to each other like money, they rely on third party companies like banks to verify the authenticity of the trade. This verification adds trust to the transaction and helps reduce the chance for fraud.
Blockchain technology is an online, decentralized digital ledger that keeps a record of trades between people that can be verified by other people within a network. This technology provides the trust and authentication service that was previously provided by third party middlemen. It will allow both normal consumers as well as businesses and suppliers to connect with each other directly, saving time, money, and generally streamlining the business processes of the world.
Blockchain technology is complex, and it’s difficult to understand at first. To explain the technology is to try to explain some rather confusing concepts and ideas. So instead of jumping right into the actual process, we’ll start by giving a simple description of the technology and then delve into how it’s going to affect the world.
How does it even work?
Blockchain technology can be used to authenticate almost any kind of digital transaction of value, including money, goods or intellectual property. It will help reduce fraud and increase the speed that people can transfer items of value to each other, cutting out the need for middlemen. This technology is going to cause a huge shake up in the way people and businesses deal with each other.
Blockchain technology allows for the transfer of ‘value’ online by fulfilling three crucial functions that have previously been required. The three functions are record keeping, establishing and confirming identity, and establishing recorded contracts. Cryptography is used to secure the information held in the chain which makes it extremely difficult for hackers to gain access to it.
So does it effect me mate?
The financial industry is perhaps the one that will be most affected by this new technology. Blockchains will enable a drastic streamlining of financial dealings between businesses and normal consumers and it will make the entire industry more efficient as a whole. However, the technology is also set to massively disrupt and alter the role of banks in people’s lives. Banks have been a necessary part of digital transactions for the purpose of establishing trust. Blockchains will make this role obsolete and could in-turn cost the industry lots of jobs as the banks lose this aspect of their services.
Blockchain technology will allow the fast, secure and easy access of people’s sensitive medical information over the internet. Beyond simply making the healthcare industry more efficient, there are also many other potential applications that involve integrating other technologies. Wearable sensors that can monitor your body’s condition have become much more prevalent and they can be married with blockchain technology for exciting new innovations. Sensors could record your body’s health information and automatically create a blockchain database that could be automated to inform yourself or a doctor if something was wrong.
Blockchain is an extremely secure form of data storage that uses cryptography to protect the data it stores. For a hacker to infiltrate a blockchain, they would need to hack into every individually secured link in the chain simultaneously. In other words, it would be close to impossible. This technology has the potential to revolutionise the world of online security while also putting more control in the hands of the average consumer. This technology will allow people to securely store their digital assets or sensitive information with an unprecedented level of confidence that it will be kept safe.
It’s still early days for this burgeoning new technology and the new potential applications are being dreamt up every day. Within the next few years it’s highly likely that this technology will start to find it’s way into the everyday lives of average people, making our lives easier and opening up exciting new possibilities.