Explaining Blockchain's Importance & Real World Applications
Blockchain explained – a short introduction
Most of you may have heard the word Bitcoin, however significantly less people have heard about blockchain and its connection to Bitcoin.
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Blockchain is a revolutionary technology. It serves as a digital ledger (think of a database – oversimplified) The most important thing about it is that it allows data to be stored and exchanged in a secure, transparent and decentralized way. Blockchain is the underlying technology that allows people to transact with each other, and information to be stored in a decentralized way. This technology operates on a computer network, where all of its nodes use cryptography to validate & record transactions.
The main characteristics of blockchain are: transparency, security, immutability and they will be explained in detail below.
If you are wondering why you should care, you should know that blockchain can be used for various purposes. It is already used in identity verification, smart contracts, digital currencies, supply chain tracking, medical records and more.
Some of the most common questions asked are:
What is blockchain and what can be stored in it?
You may ask: If we already have digital ledgers, why would we need a different kind of them? Blockchain is different in the way it is storing the information.
Information stored is linked together using cryptography. This is the reason why it is considered secure, because mathematics and cryptography validates the information stored.
Every different node(=computer) in a network, keeps a full data record of the blockchain.
What types of information can be stored? Many different kind of info may be stored in a blockchain, however one of the most common uses of the ledger is for transactions.
If you should remember a few things about the blockchain (without getting into technicalities), I would suggest the below
Transparency: All transactions on a blockchain are recorded and are publicly available. Every transaction is irreversible and can be tracked after its validation by the network nodes.
Security: Blockchains use cryptographic methods to secure the transactions in their network. It is not possible to manipulate transactions, therefore digital asset are secure.
- Decentralization: If you are wondering who is responsible for maintaining all the Bitcoin records, the answer is simple. Everybody! Every node in the network has the blockchain, it does not rely on a centralized authority and no single authority can stop it or hinder its operation.
So, when was blockchain introduced?
The first time when the concept of blockchain was introduced was in 1991, when two researcher were discussing a system to timestamp documents in a way so that they would not be tampered..
Years afterwards, in 2008, Satoshi Nakamoto, an anonymous person (or group of persons) published one of the most famous white papers titled "Bitcoin: A Peer-to-Peer Electronic Cash System"
The proposal of Nakamoto was a new digital currency that would be used without the need of any intermediary. Bitcoin first launched in 2009.
Did Nakamoto realize how important that would be and what powers would be unleashed?
Even though bitcoin and blockchain was first and foremost used as a digital currency platform, it soon became evident that it was only a beginning of a bright future. The applications expanded way beyond finance and it attracted interest by many different industries.
What are some blockchain applications?
Non-fungible tokens (NFTs): Artworks or music, game items, or even phygital (physical + digital) items can be created and verified via blockchain. These can be sold or traded.
Blockchain is the underlying technology for Metaverse, an immersive virtual world where people can do anything they can do in the real world, but virtually. play, learn, work, meet etc.
Cryptocurrencies are enabled by blockchain and can be stored or transferred, used for payments or even for other actions such as staking.
DeFi stands for decentralized finance. Several platforms use blockchain technology and users can make any action they want as if they would do them in a decentralized bank, where the users have all the power and need no middle man.
Smart contracts are self-enforcing agreements, that can be created and executed with the use of blockchain. These can automate specific actions and processes, services, contracts and more.
These are many more use cases and also potential use cases that are being developed, and you can see some of the below links for further information.
What lays ahead?
Blockchain is a fast evolving, revolutionary technology and as such there are many limitations but also challenges. There are already universities that offer bachelor and master degrees on the subject to research issues such as scalability, regulation, mass adoption and more.
Blockchain has the potential to transform how we store, exchange and manage data in all aspects of our lives.
We should consider the opportunities for education, self development, investing, art creation, entrepreneurship, science etc
This list can go on .. and it will..
Final words
I had a discussion with my brother the other day. He knows that I ve been a blockchain enthusiast since 2017, urging him to do things with me, to come together to this journey. He always forgets what I tell him, he is waiting to see where all this will lead me so that he sees what he ll do.
I think I should create some web3 accounts for him and then blackmail him to use them, hahaha. I am sure he will grow a habit out of it and then he will blame me for not forcing him early.
How about you? Is your close environment interested in these applications? In what way? Was it difficult to inform them?
I hope that this post will make it easy for you to understand more about this technology, if you are just starting your journey. Feel free to read the below links and/or take the free course by the University of Nicosia (link below)
Bitcoin: A Peer-to-Peer Electronic Cash System - https://bitcoin.org/bitcoin.pdf
A Brief History of Blockchain - Harvard Business Review - https://hbr.org/2017/02/a-brief-history-of-blockchain
10 Most Popular Application of Blockchain – EDUCBA - https://www.educba.com/applications-of-blockchain
33 Top Blockchain Applications to Know for 2023 - https://builtin.com/blockchain/blockchain-applications
A Brief History of Blockchain - Harvard Business Review - https://hbr.org/2017/02/a-brief-history-of-blockchain
Free MOOC – Digital Currency - https://www.unic.ac.cy/blockchain/free-mooc
Posted Using LeoFinance Alpha
Blockchain has enormous possibilities still to offer to us and along with defi, metaverse, cryptographies and many other smart features in a systematic way. What we have been doing here on the app, just as : virtual meeting, sharing, expanding, creating and developing the chain, every single action has consequences, that shape the blockchain to more evolved form.
A very wide angular concepts have been on display here and I already knew that blockhchain have been enrolled to tertiary education and that is phenomenon few years ago where it dated back.
Moreover, cryptocurrency is also an applied field of economy where universities are conducting courses to enrich diverse theories and applications.
Today I converted my 3.2 dollars of crypto to low transaction cost coin called xlm I really hope this crypto is promoted more cause I saved a lot of money cause of it.
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