The word Blockchain, otherwise known as the distributed ledger technology, has continued to take the world by surprise and has made a lot of people want to learn more about it. A lot of people got into the Blockchain Technology through cryptocurrency while some people are only concerned about the money it brings.
Few of us were attracted due to financial prospects of cryptocurrencies before they later fell in love with the technology in question. Most people relate Blockchain to the finance sector (maybe due to its closeness with cryptocurrencies). Blockchain, on the other side, has more real-life application than just powering the decentralized financial system. The other advantages of this technology are so numerous that a lot of tech giants could not help but venture into it.
Applying the blockchain technology to the non-finance sector could be a deal-breaker for most organizations and individuals. These organizations could save a lot of money if they embrace and key into this fantastic opportunity. This post will attempt to shade more light on the Blockchain, how it works, and some fears expressed by the world.
Blockchain Technology, how it works and the good side
The Blockchain can best be described as a block (digital information) that is stored in a chain (a public database). These blocks are unbroken and can be found on thousands of computers simultaneously. New digital information is added as they occur. The process of adding new digital information as they occur is known as transactions. These transactions may include making purchases, sending money, making a post in terms of some crypto-related platform, etc.
Apart from adding new transactions, the previous block’s data are stored, encrypted, and updated on the computers of all members of that system. It is after this process that the miners then move over to generate the new block.
In summary, the Blockchain works in a straightforward pattern that includes:
- A transaction has to occur, and for example, I make a purchase.
- After my purchase, that transaction has to be verified by thousands and sometimes millions of computers around the world. This verification is to make sure that the said transaction took place exactly the way I said.
- After a successful verification, my transaction will then be moved to a block to join other similar transactions.
- After successful verification of all the transactions in the block, a hash is then assigned to the block. It is only after the block has been successfully hashed that it can be added to the Blockchain.
It is worthy of note that the public now has access to the block once it has been added to the Blockchain. The public can now see the time, height, and who relayed the block to the Blockchain.
Since the Blockchain is public and thousands of individuals have a copy of it, it is, therefore, difficult to manipulate or change figures of any transaction.
The beauty of Blockchain is the transparency it brings to the system. A lot of people are protesting that their government should be transparent in the handling of the affairs of the nation. Transparency is a quality which has made a lot of people choose the blockchain platforms over other available ones. In Blockchain, it is impossible to manipulate figures or data. It is a decentralized system and also has a high-security level. It is almost impossible to break in without the necessary clearance.
Apart from the above features, Blockchain has helped solve a lot of money circulation problems and helps keep the book open for everyone to see.
The technology was first mentioned by Stuart Haber and W. Scott Stornetta in 1991. They both dreamed of having a system where it was impossible to manipulate the timestamps.
Their dreams had to wait for about 18 years before Satoshi Nakamoto introduced Bitcoin publicly in January 2009. Bitcoin then became the first real-world application of blockchain technology.
The world has witnessed a lot of shift towards the Blockchain since the success of Bitcoin. This can be confirmed by the numerous life-changing projects that have been made a reality with the help of blockchain technology. Never have we experienced such a secured and trustworthy mode of transaction in the history of man.
Blockchain Technology Fears
While a lot of people have embraced and adopted the blockchain technology, a greater percentage of the populace is still yet to embrace this technology. A lot of good projects have surfaced on the Blockchain, but some of them are facing acceptability issues. I wouldn’t blame the populace since Bitcoin is still yet to fully gain adoption.
When these set of people are asked why they are scared of the Blockchain, a greater percentage of them talks about safety. They fear that their projects, finance, and other sensitive things might be lost to hackers. You can’t blame them. There have been reported cases in which big exchanges with tight security suffered from the hands of hackers. If exchanges with such amount of security experts still get hacked, then they can’t help but wonder if their funds are genuinely safe.
Apart from hacking, some of them that have written to us have expressed their concern over the high anonymity involved. Some of them also complained of the inability to retrieve accounts if the private key is lost in some cases. Their fears are much even though we expected them to be so.
A lot of projects has scammed people, and most victims took to the media to paint the technology bad.
They all fail to remember that the technology is still young and are still short of active developers. With time, a final solution will be given to most of these issues.
Some organization is scared of the cost involved in implementing the EDM (Electronic Document Management); however, they’ve forgotten to analyze the huge advantage that comes with the protection of their documents from loss and forgery.
It is always difficult for people to leave their former way of life, and we should be patient with the world without relenting on our efforts to showcasing the advantages of the Blockchain.
Imagine having a Blockchain-based election in some countries with high electoral manipulation. That would have been a deal-breaker as far as that sector is concerned.
We can achieve a lot with the Blockchain if we all support and embrace the technology. We can have the dream world devoid of forgery and manipulation.
This technology would be helpful in so many sectors such as insurance, banks, delivery services, and a whole lot of other sectors.
All these and more are possible with Blockchain.
Feel free to share your blockchain experience with us.