The Birth of Blockchain Tech
Following the financial crisis in 2008, a little-known article at that time was released called “Bitcoin: A Peer-to-Peer Electronic Cash System.” In the now very well-known article, Satoshi Nakamoto laid out the framework for a financial database called blockchain that could be managed autonomously using a peer-to-peer network.
This database contains digital records, or blocks of transactions, using a secured method of cryptography. In fact, the codes used to conceal these records are so advanced, it would take the world’s most powerful supercomputers more than 1 billion years to crack. In one neatly packaged article, blockchain offered people a way to gain back the trust they’d lost to the traditional banking system. That’s because blockchain functions as a digital financial ledger. It records every transaction in an unalterable public space. And it’s accessible to anyone, so long as internet connection is available. Picture it like this.
You and an unlimited number of friends make copies of every single record you have on file. Then you encrypt the data and store it on your own computers all around the world. If one computer file is ever hacked or stolen, the thief cannot interpret your data. You have an unlimited number of backup files saved on your friends’ computers. That’s how blockchain works. Each computer, or “block,” connects with a series of other computers to create a network, or “chain.”
Once information is processed through the blockchain, it is locked into every computer in the network at the same time, creating a permanent, unalterable digital record. Once the data is locked, no one can change it. Not even the companies that design and operate computers for the blockchain database. As you can imagine, this technology is a game-changer. For the first time in human history, we can create a permanent record of every transaction, governed by the immutable laws of mathematics.
Kripto Para Birimlerinin Yükselişi
Back when blockchain technology was first introduced to the public, bitcoin was proposed along with it. A lot of people think that both terms are synonymous, but that couldn’t be further from the truth, as we all very well know. Blockchain is the digital ledger. Bitcoin, on the other hand, is one of many cryptocurrencies that allows peer-to-peer transactions without the need of a third party. So, bitcoin transactions get recorded on the blockchain just like any other purchase made with a digital currency.
With so many people now participating in the crypto market, the industry has ballooned since the first days of bitcoin. In the beginning of 2018, the total cryptocurrency market cap surpassed $600 billion. This means that companies contributing to the crypto market are going to see a huge increase in revenue as demand for better and faster computer technology rises. But keep in mind that cryptocurrencies serve as only one of the ways that blockchain technology can be used. Let’s take a look at some of the other possibilities in the works.
Creating an Open-Source World
In the future, everything you do— every bank transaction you make, every shipment you track, and every record you keep will be recorded on a blockchain network. This technology will replace the decades-old, backward-looking ways of the past. Think about it.
Our economy is still practically stuck in the Stone Age, relying on paper contracts and proof-of-identity cards for everything — from getting your driver’s license and voting to buying a house and traveling out of the country. At best these records are easy to lose track of, and at worse they’re easy to manipulate, leading to issues like identity theft and loss of income.
Some industries like health care have moved their records online, but even those databases aren’t safe from professional hackers. The point is, our personal identities aren’t anywhere near as safe as the government would like us to believe. But blockchain offers a solution. With it, we can change the way we store personal information and make transactions for goods and services.
Blockchain will make life simpler and safer at the same time. Hence why the biggest companies in the world are all scrambling to become early adopters of this new technology. IBM has openly pledged to lead this technological revolution. Microsoft has also launched a multimillion-dollar project to promote this new tech, stating:
“We are seeing a lot of momentum and excitement in this space.”
And the CEO of Nasdaq called blockchain “the biggest opportunity we can think of over the next decade or so.”
But it’s not just tech companies that are taking notice. America’s 10 largest banks have already invested $267 million into companies backing blockchain. Last year, less than 15% of all banks used blockchain. Now, roughly 75% of financial companies expect to adopt it within the next 24 months. And it doesn’t stop there:
-The Center for Disease Control is planning to use blockchain to keep more accurate and easy-to-access medical data, potentially saving thousands of lives in the future.
-Governments around the world are in the early stages of using blockchain to manage real estate titles. The state of Vermont authorized the first-ever real estate transaction on a blockchain.
-Shipping companies are already using blockchain to manage their supply chains. Penske, FedEx and dozens of other companies have signed on to the Blockchain in Transport Alliance.
-Small companies plan to go public and raise capital directly on a blockchain, eliminating the need for initial public offerings that require them to pay Wall Street’s ridiculous fundraising costs.
Even fundamental government functions like voting and recording marriage licenses could be done on a blockchain network in just a few years. The possibilities that blockchain offer are nearly limitless. Just look at the opportunity that we have put ourselves at the forefront of – the Steem blockchain.
