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.