In this world of technologies many speak of blockchain, but very few go beyond their meaning or cryptocurrencies. However, this chain of blocks represents an opportunity to change the way things are done in society, government and economy.
The chain’s system gives a lot of confidence to those who use it. The most notorious example of blockchain art technology is the invention of Satoshi Nakamoto, the Bitcoin cryptocurrency. In his quest to invent a form of electronic cash that could survive outside banks, he created a system that puts time tags on transactions with a very difficult method of sabotaging. Bitcoin showed the world that the chain of blocks could provide a peer-to-peer currency without fraud. It is likely that companies place the chains above the internet to create layers of security and confidence.
But blockchain is not only Bitcoin. It is a multifaceted tool that can be developed, combined and applied to many areas:
- Electronic money – Online “miners” create cryptocurrencies like Bitcoin and Ethereum. Such currencies are an efficient way to buy and sell goods. The novelty of these currencies fostered speculation, which makes the value of Bitcoin volatile, but as cryptocurrencies gain acceptance, it is likely that this volatility will be reduced.
- Decentralized computing infrastructure – A network of connected computers are the engine of the chain. This network follows previously agreed instructions to register and release information, all through cryptographic verification.
- Transaction platform – Block chain technology can create digital records of purchases and other transactions. For any purchase, the platform creates a “block” to which users can refer to later verify the transaction.
- Decentralized database – Chains will not replace large databases, but will require softwaredevelopers to adjust their applications. Chains will allow you to store data somewhat publicly. Anyone can see that you have stored information in the chain, but it will remain blocked.
- Distribution of accounting books – The chain allows the creation of shared books that could, for example, store a list of each transaction that your company makes in your system. You can store the information privately or publicly.
- Software development platform – The block chain opens the door for developers to create new decentralized and closed applications with cryptography.
- Open source software – The Bitcoin protocol is open source. The block chain offers a public platform that invites collaboration. This opening encourages innovation and the creation of a robust ecosystem around software.
- Financial services – The chain got its start in cryptocurrency, but developers can adapt the concept to all financial instruments, including derivatives, options, exchanges, investments and loans.
- Red peer-to-peer – The chain is a thin cloud of computation that is truly decentralized. The chain eliminates intermediaries and allows users to make transactions anywhere at any time.
- Layers of trusted services – Bitcoin uses the chain to solve the problem of the fraudulent double use of cryptocurrency. Its integrated trust layer extends beyond the currency to data, processes, identities, as well as other physical objects and intangible services.