Blockchain is the kind of technology that’s going to change every industry soon enough. It’s a completely new way of looking at data, and one the world needs. Blockchain offers many possibilities to the world. It is a technology that is finding its way to every part of the globe. We are coming up with creative uses of its unique design all the time. Blockchain has the potential to solve issues many industries face: security, trust, and efficiency.
Data Is The Safest It Ever Was
Verifiable data is a cornerstone of how blockchain works. It’s the pillar that everything else rests on. Traditional data storage sees a computer or a server store files much like a filing cabinet. Some more advanced backup software can create copies in other locations for security. Modern cloud services such as Dropbox or iCloud offer file storage on servers. Blockchain transforms the way data is stored as if you were reading a sci-fi novel.
Look at it this way. If you wanted to make sure a book was passed down to future generations, what would you do? If you have but one copy, you spill some coffee on it, and it’s ruined. So you make more copies so that you aren’t terrified of accidentally ruining the book while reading. What if the house burns down with all the copies?
Blockchain attempts to solve the two problems articulated above. Having one copy is bad, having many copies in one place is also not safe. So what happens in a blockchain? In the blockchain files are distributed across data holding blocks. These disparate files are glued together by system design. Moreover, the data is usually chunked for even greater efficiency. The final product we get in the end is a chain of blocks holding hundreds of identical data chunks. The safest data storage method ever created.
Why You Can Trust The System
You know that the data is in the system. Do you just assume that it’s safe out there on some company’s server? That’s exactly what we do when putting our photos or private notes on cloud servers such as that of Apple or Google. Every company has a confidentiality policy, and each country has laws that try to protect its citizens. However, by design, this privacy and security has to be layered on top of traditional data storage.
Blockchain is the opposite of that. Your data is not stored by any single entity. Instead, it is distributed across all blockchain servers all over the world. In essence, every single node in the network carries the entire database. If Apple only stored your files on one server, and it went down, you wouldn’t be able to access it until it was repaired. With blockchain, even if half of the servers worldwide go down every single bit of data is still available. Each block is heavily encrypted, the whole chain is protected, and inaccessible by anyone other than the owner.
How It’s Used Right Now
The most prominent example of blockchain right now is cryptocurrency. Blockchain rapidly developed to satisfy cryptocurrency’s needs. Their development happened together. In 2021, crypto will be actively used for the safest and most confidential transactions in the world. If you are paid a salary via cryptocurrency, that transaction would be visible only to you and your employer. If you buy a product with crypto, nobody’s going to know how you paid for it. Only the seller who receives your currency to his account and you the buyer will know.
Where online technology thrives, crypto and blockchain immediately follow. In Japan, you can get a feeling that you’ve traveled in a time machine. That’s because they aim to utilize every single bit of innovation that comes their way. Online casinos are one of the industries that benefit both from crypto’s anonymity and payment security. In Japan, making deposits or withdrawals with crypto is now commonplace.
Finance is but one area where blockchain is utilized. It is actually suitable for every imaginable kind of data storage. Here a just a few examples:
- Blockchain can promote democracy through transparent yet legitimate voting.
- Management of gigantic supply chains with hundreds of little details.
- Acting as an intermediary between two parties for the purposes of escrow. Traditionally a costly third party such as a lawyer would be required.
Blockchain’s highly secure nature is also beneficial wherever the privacy of information is of the highest priority. This includes digital property, healthcare, eGovernment systems, and even your phone. Yes, the future of mobile phone security is likely in the blockchain.
Advantages and Shortcomings Of Blockchain
As blockchain is a relatively new invention, we don’t have a 100% grasp on all the intricate details. Many are learning on the go, and that seems to be a one path for human discovery. However, we have already identified a lot of common pros and cons. Here is a shortlist:
Common Benefits
- Security, stability, integrity
- Simplicity, speed, long lifetime, transparency
- Cutting out the middlemen, lower operational costs, avant-garde business implementation
Common Pitfalls
- Large energy consumption, higher expenses for implementing new technology
- Potential redundancy of every node carrying all the information
- Murky regulations, the potential for misuse, lack of control
- Privacy concerns, reliance on individuals for accessing the whole system
- More physical space is required because all the data is copied and has to be stored in all the nodes
As they say, the devil is in the details. When it comes to complicated technology, understanding the details and how they connect to each other is power. Here is an ultimate guide to weighing decisions about blockchain.
Final Notes
Blockchain wasn’t developed by some corporation sitting in a tall skyscraper. Individuals developed the concepts with a desire to change how financial institutions work. It was initially created for cryptocurrency, but it is easy to see more potential. Flipping world balance towards the individual is a primary ideology backing blockchain. The revolution of blockchain is under way.
