Blockchain
More than just crypto!
New technologies are integrated in our lives every day and sometimes we don’t even realize it!
What is Blockchain and why is important?
New technological terms are integrated in our lives every day,and we don’t even realize it! One of those is blockchain which is basically a shared database. Basically, pieces of data are stored digitally in structures known as blocks and each node of the network has an exact replica. A blockchain network can track orders, payments, accounts, production and much more. The innovation is the security of data. It also generates trust without the involvement of third parties. So what are the differences between database and blockchain? A database sets information in tables, while the blockchain stores its information into blocks that stick together. These blocks have certain storage and when the previous one is filled, the chain continues to the next in chronological order.
One famous example of blockchain is bitcoin which is basically a decentralized chain. In this form of chain all users have control rather than just one person or a group. The goal here is to allow the data to be distributed, but it cannot be edited or destroyed. Blockchain allows the data to be spread out among several network nodes at various locations. That maintains the fidelity of the data, if somebody tries to alter a record of the database, the other nodes would not be altered. So it is possible for a blockchain to hold a variety of other information like legal contracts, state identifications, or a company’s product inventory. In blockchain all transactions are transparable, therefore anyone can see them. While the information stored is encrypted, users can rermain anonymous and preseve transparency at the same time.
Who is using blockchain?
Blockchains can have many forms according to the user’s needs. The two most used and popular types are public and private. A public blockchain is one that anyone can join, such as Bitcoin. The catch in using the public type is that it might need more power, there is little or no privacy for transactions, and weak security. The private blockchain network, is decentralized. But the organization that governs the network is controlling who is allowed to participate. Therefore, it can significantly boost trust and confidence between participants, as they can use it behind a firewall.
Where is blockchain trending?
Food industry
The innovation of blockchain gives brands the ability to track a food product’s route from its origin, through each stop and finally its delivery. If a food is found to be contaminated, then it can be traced all the way back to its origin. The companies can benefit from this because they can now see everything else it may have come in contact with, allowing the identification of the problem to occur way sooner.
Currency and banking
Probably where web 3 is mostly used and considered a life savor from bankers and financial industries alike. Banks used to operate only on working hours, which means that consumers had to wait hours or even days before their transactions. Now with the help of blockchain, consumers can see their transactions within minutes and banks can exchange funds faster and more securely. In the currency field blockchain is used for cryptocurrency and allows them to operate with everyone being involved and not only from one authority.
Healthcare
Healthcare providers can use blockchain to securely store their patients’ medical records. When a medical record is generated and signed, it can be stored digitally. That way patients and hospitals can feel secure that the file exists and that it cannot be changed, ensuring privacy.
Smart contracts
A smart contract is a computer code that can be built into the blockchain to negotiate a contract agreement. They operate under a set of conditions to which users agree. When those conditions are met, the terms of the agreement are automatically carried out. For example, a landlord can use smart contracts in order to secure a new lease that both sides agreed upon.
Final thoughts: Blockchain yay or nay?
The use of blockchain is not always fun and games, they are also drawbacks. For example, issues with data speed have been reported, where it takes several minutes to add a new block and that is something developers are currently working on improving. Another issue are illegal actions, while the web 3 network protects users from hackers and preserves privacy, it also allows for illegal activity. Hackers can use the dark web and with the help of cryptocurrency they are able to buy and sell illegal goods. So the debate is that many argue that the good uses of crypto outweigh the bad. The sad truth though is that most illegal activity is still accomplished through untraceable cash. So should we avoid blockchain for the reasons mentioned before? I think a few drawbacks do not outweigh the good. This technology is already being implemented and explored and blockchain is finally well known because of bitcoin and cryptocurrency. Now more than ever, blockchain stands to make business and government operations more accurate, efficient, secure, and cheap. So the question now is not if companies will catch on to the technology but when, so they won’t be left behind.
