
Blockchain Technology, insight for beginners.
Blockchain
technology is also a term that is relatively new to me, but for those who may
have never heard the term or are not aware of its significance I thought some
insights could go a long way in helping them to understand what it actually
represents. Those familiar with the term may as well be aware of blockchain as the
underlying platform that is the backbone for cryptocurrencies, of course Bitcoin
comes to mind, as a decentralized ledger system that facilitates the exchange
of cryptocurrencies without a regulatory framework. This could as well be the
main reason that many governments have been so skeptical of cryptocurrencies
but at the same time also secretly investing in them since they are a matter of
not if but when.
Back to the point
of discussion, blockchain technology is a kind of new ecosystem on the internet
that has so far eliminated third parties and arbitrators in facilitating
transactions. owing to the fact that cryptocurrencies are the best known form
of applications, could be more in the future, people are finding ways of
liberating themselves from processes that reduce efficiency due to bureaucratic
and governance protocols. As in the previous article “emergence of alternative exchange systems” people deriving their own money to drive their economy within
their neighborhood is a catalyst towards developing this ecosystem. Bearing
that in mind, we can proceed to examine why there is a continuing trend of new
cryptocurrencies on a rapid basis. From my basic understanding that blockchain
technology facilitates decentralized ledgers, this takes care of two virtues of
human nature that are the core of commerce, namely trust and ownership.
With the
advancement of technology today courtesy of accessibility, availability and
utilizing it through friendly user interfaces, ownership of what is only yours
and not an entire platform sounds like a good idea with minimal or no
investments. This has been facilitated through individual accounts commonly
referred to as wallets. These wallets are at the disposal of their individual
owners to access and use in any manner they like. They also make it possible to
pay for goods and services directly to the provider and since the underlying technology does not
have a proprietor, regulation and arbitration having been eliminated is a breath
of fresh air to those making use of it in comparison to the traditional
monetary system. Blockchain technology’s capacity in enabling multiple access to resources
in it without data locks as experienced in hibernate database systems, by
having identical blocks of information across its network hence ensuring trust
eliminates repudiation, enhances accountability in a form so effective than all
others previously known to mankind.
With the
emergence of the shared economy through e-commerce platforms in provision of
goods and services some years back the only factor that posed a big challenge
to their success was the limitation brought about by currencies and the
exchange rates amongst them. This is a big stumbling block to e-commerce in
making payments as I once experienced and more so in cases of currency risks
commonly experienced in the developing world as a result of unstable political
climates. The adoption of cryptocurrencies as an acceptable medium of payment
in e-commerce platforms is a game-changer reality that is well on its way to
eliminating the banking system from it. This narrative is derived from lack of
trust placed upon government institutions and corporations and there could be
no better relief than the fact that we can actually do better than we are
currently doing without them.
Blockchain
technology success lies in its capacity to inducing trust without expenses. As
you may be aware that trust is factored in the expenses required to complete a
transaction, blockchain technology has successfully guaranteed trust in online
transactions at zero costs. This is enabled by a distributed network of its
contents that enforce data integrity and eliminate failure. The data cannot be
tampered with as an attempt to do so would result in overriding the underlying
technology which is only theoretically possible but practically impossible. The
enforcement of data integrity is an addition to the encryption mechanisms that
facilitate the authorization and authentication between parties when
transacting over the blockchain technology.
So what does
the future hold as far as the blockchain technology is concerned. Having highlighted
the attributes that make blockchains so popular it is prudent to assume that
they will be used to facilitate transactions in many other fields and not only
limited to cryptocurrencies. I would suggest making use of blockchains to
overcome piracy of digital products, registration of business entities and lastly but not the
least this would be more than welcome if used to conduct elections. There can
never be a system that can safeguard democracy today as we know it better than
the blockchain technology. This means that authenticity and security of results
reflects the will of the electorate with verifiable and unalterable proof. Just
a little bit enough for insights on blockchains and the numerous possibilities
they present feel free to know more about it and the solutions available to you
depending on your circumstances.
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