Bitcoin this and Bitcoin that. It seems like the modern-day media publishers have lost their minds over the newest, hottest currency and there is no surprise. The word Bitcoin itself is clickbait enough to hit #1 spot on tabloids today. For better or worse, the crypto market is here to stay.
Sadly, the minds of the many fail to grasp the true importance of Bitcoin. And who can blame them when the stories of people making millions overnight are much more fascinating than the tales about the technology that made said richness possible?
Well, I can. And I will.
You see, dear reader, the Blockchain surpasses Bitcoin in so many ways. For starters, the latter is but a currency while the technology is the starting ground that allows earning said currency while making our world a better place for everyone. This, dear friend, is why Blockchain is huge. Some even say that it is as monumental as the invention of the internet, if not more.
The Blockchain impact
Oh, come on! Blockchain can’t be as big as the internet. Or can it?
To answer this question you have to understand how the internet itself works. Imagine a large database website of personal records you can use to find contact info. It works as follows: the database is stored on a server somewhere and you use your browser to connect to it and open it in a clear, pretty window of polished UI. You have your own login and password you enter to access the contents of the said database website. Enter them and browse through the contacts – it’s as simple as that. This is how modern day internet works in a nutshell.
But what will happen if the server malfunctions? What will happen if someone inputs the wrong data? What will happen if it will lose connection? Or even worse, what will happen if the server is hacked like the infamous Ashley Madison?
The answer to all of these questions is simple – you lose. Damn, it seems like we call the internet a dangerous place for a reason.
Ok, now that the basics are covered – imagine a massive network of computers that all store the same database. If one of them goes offline – the network just does not care. Not a single member will lose access to the data.
Wrong inputs are also impossible, as every computer in the network must verify even the slightest changes to the database.
Then there is the security issue that’s handled masterfully with the fact that the entirety of the database is encrypted.
And this, my friends, is Blockchain in a nutshell. It is stable, secure, distributed and multifunctional. Can you imagine the limits of said technology? Because I can’t.
Where Blockchain shines!
Now that we’ve covered the basics of distributed computing the time has come to discuss where Blockchain really shines the brightest.
– ID protection. Don’t get this wrong, a password is fine and all but it can be broken through a lot of ways and most of them don’t even involve hacking. Phishing tactics, fraud, and submission bates make the lion’s share of a hackers arsenal. Encryption, on the other hand, superior to passwords as it can only be broken down mathematically and such an effort may take months or even years.
– Smart Contracts. Trust is not an issue when no one can break it. This is one of the largest strengths of the Blockchain network where deals are easily set in stone because a heartless, emotionless machine computes the obligations of both parties and only delivers the gains after all goals are met.
– Quality control. A Blockchain network logs and stores every iteration in the database. Imagine a factory that produces and manufactures, say, canned foods. If an error occurs at any stage from food preparation to packaging it can be easily traced up until the very can in which the error took place.
These are but a handful of processes where a technology like Blockchain can serve as a real game changer. Do you know of any other powerful applications for the tech? Please share them in the comments!