The blockchain is a network of computing nodes in which each and every node is an administrator of the blockchain. Each node gets a copy of the whole blockchain to create a powerful second-level network. The blockchain is a decentralized technology ie; there is no central authority. A global network of computers uses blockchain technology to jointly manage the database that records Bitcoin transactions.
Being a decentralized technology, blockchain has it’s own unique properties.
Durability and Robustness
Block chain technology Bitcoin was invented in 2008 and has been operated without flaws. It stores blocks of information that are identical across its network with built in robustness. It cannot be controlled by any single entity. This technology is as durable and robust as the internet itself.
Transparent and Incorruptible
The network reconciles every transaction that happens in ten-minute intervals. As a result, transparent data is embedded within the network and altering any unit of information on the blockchain would mean using a huge amount of computing power.
Blockchain security methods use encryption technology. The blockchain stores data across its network hence there is no vulnerability that computer hackers can exploit.This is implemented by public and private keys. A public key is like the users address on the blockchain and private key is like a password to owner access to their digital assets.
The blockchain potentially cuts out the middleman from transactions. The blockchain technology is mainly applicable in the finance sector which has increased the demand for blockchain developers. With the invention of the Graphical User Interface (GUI), personal computing became accessible to the general public. Wallet applications also use cryptocurrencies and the identity will remain hidden.
What will be the impact on new business applications which will adapt blockchain technology?
Distributed database technology brings full transparency to elections, voting,etc. for eg; Ethereum-based smart contracts. It proves to be fully transparent and verifiable when managing digital assets, equity or information.
The Sharing economy
The blockchain opens the door to direct interaction between parties which makes the sharing economy is already a proven success. This is used by companies like Uber and for users to hail a ride-sharing service.
Blockchain technology has potentially creating crowd-sourced venture capital funds. Kickstarter is an example of crowdfunding platform, where people contribute in the development of a product. Indiegogo and Fundly are such other examples. And the latest ICO’s are running are using the blockchain technology.
Supply Chain Auditing
Distributed ledgers provide an easy way to certify that the ethical claims they make are real which are to be verified by consumers. Transparency comes with blockchain-based timestamping date and location for instance while purchasing diamonds.
Distributing data throughout the network protects files from getting hacked or lost. Inter Planetary File System (IPFS) makes it easy to conceptualize how a distributed web might operate. Improvements such as these are not only convenient but also is a very necessary upgrade to the current content-delivery systems on the web which are already overloaded.
Protection of Intellectual Property
A smart contract can protect copyright and automate the sale of creative works online, eliminating the risk of file copying and redistribution. Voise uses the power of blockchain to create music distribution system which is peer-to-peer based.
Internet of Things (IoT)
The network-controlled management of certain types of electronic devices — for instance, the monitoring of air temperature in a storage facility. Smart contracts make the automation of remote systems management possible. The result increases system efficiency and improves cost monitoring.
The buying and selling of the renewable energy generated by neighborhood microgrids can be done using blockchain. Ethereum-based smart contracts automatically redistribute the energy that solar panels make in excess.
Developing digital identity standards is highly complicated process.a universal online identity solution requires cooperation between private entities and government. The legal systems in different countries makes such requirements nearly impossible. E-Commerce on the internet currently relies on the SSL certificate (the little green lock) for secure transactions on the web.
In future, social media platforms like Facebook users will have the ability to manage and sell the data their online activity generates. The currency that gets used for this type of transaction can mostly be Bitcoins as they are easy to transmit.
Land Title Registration
A number of countries are undertaking blockchain-based land registry projects. Blockchain technology can make record-keeping more efficient with publically accessible ledgers. Property titles are more prone to frauds as well as the cost to administer can be unaffordable.
In stock trading,the intermediaries get eliminated by executing peer to peer leading to instant trade confirmations. This adds efficiency in share settlement by use of blockchain.