What is Blockchain? Detailed Explanation

0
369

You have probably heard of the word blockchain in context with cryptocurrencies several times. In one year, it seems the blockchain revolution is on a steady rise. Wondering what the hype is all about? What is blockchain and how will the world benefit from it? Follow along, and we will explain blockchain how it works, what advantages it has and why it is such a central point of especially cryptocurrencies.

What is blockchain for dummies?

what is blockchain?A lot of people consider Blockchain as the high technology that powers Bitcoin. Even though this was its original purpose, blockchain is capable of a lot more. Despite the sound of the word, there is n’t just one block chain. The blockchain is short for a whole suite of distributed Ledger technology which can be programmed to track and record anything of value. From Financial transactions to medical records and Land Titles as well.

You might be thinking do we not have a process in place to track data already? What is so special about blockchain?

Reasons the blockchain stands a chance to revolutionize how we interact with each other

The way it tracks and stores data.

what is blockchain?Blockchain keeps data in the form of batches called blocks which are stitched together in a chronological manner forming a continuous line; metaphorically a chain of blocks. You can not rewrite the information already written on a particular block. However, the change is stored in a brand new block indicating that A Changed to B at a specific date and time. Does that ring a bell? That is because the blockchain focuses on the centuries-old method that is the General Financial Ledger. It is a non-destructive version of tracking data changes over time.

For example

Let’s assume that Merry had a disagreement with her brother Mathew about who owns the land that has been in their family for many years. Since the blockchain technology makes use of the ledger method, There is an existing entry in the ledger that indicates that Mathew initially owned the land in 1900. When Mathew sold the property to Adam in 1920, there was a new entry made in the ledger, etc. every time there is a new entry in the ledger indicates a new owner of the land, the change of ownership.

This is until Merry bought it from Mathew in 2006. Merry is now the owner, and we can prove this with the historical evidence in the ledger. Now, this is where it gets interesting. Different from the old ledger method, blockchain is made so that it is decentralized and can be issued across a massive network of computers. The decentralization decreases the chances of tampered data, with which takes us to the second unique factor of the blockchain.

It creates trust in the data

Before a block being added to the chain, there are a couple of things that need to happen.

1. A cryptographic block needs to be sold wich automatically creates the block.

2. The computer that manages to solve the puzzle first will now share the answer with the other computers within the network. This process is called “proof of work.” in blockchain terms.

3. The system then verifies the proof of work, and if it is accurate, the block will be added onto the chain.

The verification is done by several computers together with the complicated maths puzzles. Makes sure that each block on the chain is trustworthy.. because the network builds the trust for you, you can now work directly with your data in real time. Which brings us to the third factor.

Elimination of intermediaries

what is blockchain?Usually, when doing business with another individual, you don’t disclose your business and financial records. However to build trust between the two parties you make use of banks or lawyers who keep your information confidential.

These intermediaries can stand as witnesses to any transactions that will occur. This process is more costly and time-consuming as well as risky. With the use of blockchain technology, you can cut out the middleman along with risk, expenses and time.

Military Applications for Blockchain technology

Drones fighting the human war. Deadly, remote strike forces that can kill in an instant without the target realizing its approach.

You will agree with me on this one!

We all witnessed the horrors of wars and even if we are against such technology usage we can’t stop it. Saving the lives of soldiers is very important but how about not going to wars.

How about we use this blockchain technology in a constructive manner instead of destructive powers.

Surveillance also makes use of the same technology and we hope that is used for the purpose of crime fighting.

Global Implementation of Blockchain Technology

Let’s have a look at a couple of existing infrastructures where blockchain technology can improve performance drastically. Similarly, optimizing the use of energy, education, natural resources, national security, and last but not least medical assistance.

How about free internet or access to helpful information? All these questions will hopefully be answered shortly.

With no further a due let’s identify the major key factors of blockchain technology implementation.

First and Most Important Improvement is in Healthcare

Users can access vital data of the blockchain in the medical field. Similarly, development of an application that will notify when users if they’re in danger of getting ill. Also, an application that will grant patients access to free consultancy from specialists in all medical fields. In the same vein, blockchain technology can unlock the potential of finding a donor for blood or organs much faster than the current operating system.

The more you think about blockchain technology the more it makes sense and it can actually save countless lives. Technically speaking we have the technology ready to be used but we need also to build the networking system to ensure practicability. I personally believe that we can add to this drones capable to identify and assist ill people. The already functional drone successfully demonstrated the capabilities of robotics for aiding humans in need. Please check this video out and it will make much more sense.

Secondly, the Most Important Aspect of Blockchain Technology Implementation is in Education

In many countries, education is not for free and that alone has to be a painful thought. Now I will ask you if blockchain technology can help our current educational system. It is safe to assume that education can actually be free and the most expensive options remaining private educational entities.

Everyone can afford a smartphone nowadays and almost everyone has access to the internet. Assuming that blockchain technology will be implemented in educational infrastructure it can save time and money for both the institution and students.

In this example, I will explain a couple of the possibilities where improvements can be made.

Let’s take for example the cost of books and the cost of food in schools cafeterias. Both can be drastically reduced if the same book was an electronic book with half its initial cost. This will give you the advantage of studying from home and also eat at home. The idea is simple and effective use blockchain technology and improves everything. Please check this video out and you will understand exactly why it’s important.

Third Worldwide Blockchain Technology Implementation its Food

Food processing and supply is one of humanity greatest challenge since our global population is constantly increasing. Also, another concerning factor is global warming that inflicts heavy damage to crops and animals. The biggest step is to think of different ways to make food available in controlled environments.

Have you ever heard of vertical farms? If not allow me to tell you that is one of the most brilliant ideas. Unaffected by climate change or lack of water, crops are safely growing in such vertical farms. Also, another advantage is efficiency because crops are receiving the optimal growing conditions with less water and pesticides free.  Another major improvement is the automatization with little to no human error. The implementation of blockchain technology will further optimize and improve the efficiency of crop growing.

Most likely you already understand what is blockchain and how technology can solve most of our global problems. Feel free to see how crops are grown in this video featured by Bloomberg.

Conclusion

It is inevitable that the technological support around blockchain will evolve rapidly. As it grows awareness of the benefits it provides will increase as well. Thereby creating a supportive community.

Blockchain technology is fundamental to cryptocurrencies, without it, cryptocurrencies such as bitcoin would not exist and vice-versa.

We are making significant progress in fixing some of the blockchain technology “BUGS” and it still is a fairly young technology, to begin with.

Education can be free and accessible for the majority where one can educate himself. However, this subject can still be debated because you still have to pass an exam and get your degree.

Blockchain technology proves to be very important for many infrastructures. So, by adding to our existing robotic technology we can achieve endless worldwide application.

Save lives with ambulance drone for people suffering from heart attacks or anxiety by reducing the arrival of an actual ambulance from 10 minutes to 1 minute.