What is Blockchain Technology?
Blockchain is a growing list of records collected and put into blocks which are then chained and secured by using cryptography. An immutable decentralized distributed ledger technology that lives in several nodes(computers).
What is cryptography?
Cryptography is the practice of problem solving techniques or solving codes.
Blockchain records are written in codes in an open-source and solved, calculated, computed by cryptography.
Blockchain vs Cryptocurrency.
Many get confused about the difference between the two, as they came to be popular words at the same time.
Blockchain is the actual technology that uses cryptography, while cryptocurrency is a cryptographic currency or digital currency, as in the assetcategory like coins and tokens, that operates on the distributed ledger platform. Cryptocurrency Blockchain ecosystem is only one of it’s most popular uses.
Blockchain use cases aside from cryptocurrency.
Blockchains processing system to transact, store, move and record data as immutable codes, can be of many uses in several different enterprises. Its characteristics can bring transparency and security to every industry:
- Sets rules and enforces them;
- Auditing; can be verified instantly;
- Tracks transactions between two or more partners with pre-defined set of rules;
- Traces data from its origin to present time disabling fraudulent activities;
- More efficiency in industries processing;
- Trustful transfer of values with transparency and efficiency;
- Updates in real-time;
- Allows for protected authorizations and consents of data;
- Coordinates contracts, rules, financial terms, payments, logistics, visibility, and tracking of supply in real-time.
Image credit: Kevin Doubleday from Medium Which has also inspired this blog. Thanks Kevin.
Blockchain connects people and industries worldwide with the level of integrity and speed that would never be possible, if it wasn’t for this technology. Connections between the data-needed to where it is needed, can be made in a timely pace that is changing the way we do everyday day things. In the future, as blockchain gets aligned with AI, with the amount of information that could be collected, we will be able to have better and more accurate human understanding, of how, why, where, how much we consume, buy, sell, how we think, use and need anything, that could transform healthcare, travelling, governments, education, relationships, businesses…. Well …. just about EVERYTHING.
- Optimization in property verification of information, updates, with decentralized records.
- Digital transactions with less paperwork.
- Faster transfer of values and titles.
- Problems and issues would rise and be seen right up-front, faster transactions and verification would all add up to more liquidity.
- Less middle-men.
- Federated repository of academic information specific to professor, student and class.
- Digital verification of credentials.
- International Online education extended worldwide with faster, trustful decentralized academic credentials. Study anywhere and from anywhere in the world.
- Chronological chain of facts.
- Documentation records with more accuracy in date and timing.
- Legitimacy and integrity in evidence due to the immutable records.
- Authorship & ownership.
- Smart contracts for artists legal proceedings, payments and remuneration processing.
- The elimination for third-parties connecting artist to “fans” worldwide and directly, opening up content availability internationally.
- Transparency, privacy & efficiency.
- Patients records availability with accuracy
- Optimized transactions and connections between Doctors and patients and vice-versa.
- Ownership of patient’s health data.
- Healthcare access; Reaching places where patients would have never had access to proper care in real-time.
- Affective process of paying claims.
- Integrity in identity verification and records.
- Reduced fraud, inefficiencies with verifiable audits.
- Minimize corruption with digitized processes.
- More compliance and accountability from government officials.
- Digitized and verified documents.
- Digital voting, immutable and cannot be doubled.
Financial & Fintech
- Fast, Secure & simplified payment processing.
- Less auditing complexity for financial ledgers.
- Global transactions with ease.
Public vs Private Blockchain
They are both a P2P network, where each participant has a “copy” of the continuously growing ledger of all transactions within a certain platform, through a consensus sync. Providing certain guarantees to the immutability of the records.
And the only difference they have is of whom is allowed to participate in the network.
A public blockchain anyone can join because it is completely open-source. And a private or permissioned blockchain requires invitation, it has a centralized authority, the network owner, who determines and sets the rules.
Private blockchains causes a little controversy because some believe it is a misunderstanding of the fundamental values of the initial proposal, which was to be inclusive, universal, secure and immutable, removing the need for third-parties.