Everyone is speaking about it, blockchain this, blockchain that, but why there is so much hype around? Well, a new age is coming, and many industries will be changed. It’s better to be aware of an upcoming age.
Blockchain is not a new technology, it is so much better. The blockchain is a digital ledger that records transactions over time, long story short, it’s a combination of proven technologies applied in a new (better) way. The blockchain is a combination of the Internet, cryptography, and protocol.
Blockchain enables a new way for people who do not know or trust each other to exchange or create a record in a safe way. It’s operated by a group of individuals together, and no single entity controls the system or its data.
It is born in the mind of Satoshi Nakamoto, the creator of bitcoin. Bitcoin is created to be a peer-to-peer version of electronic cash. Bitcoin had to be able to handle transactions without being diverted into the wrong account or to be spent twice by the same person. It’s a dream of a decentralized system that has to be achieved without and trusted middleman, such as the bank. But, blockchain is much more than just an idea.
Don’t pay expensive transaction fees to banks
Banks and payment industry will get most benefit from the blockchain. It will do to banking the same what, a decade ago, Internet did to media. With the blockchain, we can give access to financial services to billions of people around the world, including those who don’t have access to traditional banking but have access to the Internet. The blockchain allows anyone to send or receive money across borders in the fastest and the most cheaper way.
Many banks around the world are researching and exploring the blockchain technology with a goal to find a way how to use it to make their systems more secure. A few researchers from the central bank of Finland pointed out that because Bitcoin is run by a protocol, it does not need to be regulated. The network always enforces Bitcoin’s code, and because users themselves determine fees, depending on how quickly they want for a transaction to be confirmed.
Banking systems are built on a centralized database that’s more vulnerable to cyber attacks. Once someone breaks into the one system, full access is allowed. The blockchain technology would eliminate some of the vulnerability against our financial institutions.
In September 2016, a British multinational bank Barclays, carried out the world’s first trade transaction using the blockchain technology. They cut a process that takes 7–10 days to less than 4 hours.
The web is not created to be centralized
Initial idea about the internet was to be a decentralized but, with the rise of giants like Google and Facebook, the web becomes more centralized. Blockchain can change that; it will enable your browser to explore the web where users have more control of their data. Users will still be able to load sites by clicking the link or typing web address, but they will not need to create accounts for each site. They will control their own digital identity and be able to grant access to some web site or if someone wants to stop using a service, revoke access to the profile will be enough.
The real estate trading without paperwork
Think about this situation, you have a house, and you want to sell it. Did you ever do that? You know how much paper work has to be done to finish the process? Well, if we involve the blockchain in the procedure it will be simpler. With blockchain, anyone can track, manage and transfer a house or any other type of property without intermediaries.
The truth is that real estate industry has always been slow to adopt new procedures or technologies. However, the time changed and industry becomes more open to new ideas. Blockchain has the potential to transform the way we sell or buy properties by lowering costs, process and increase transparency.
Implement digital voting in a better way
Today, the most countries in the world have the democratic system in which the voting is a crucial and important event for decision-making. However, most of them are still using a paper-based system to execute the voting event. The time for modernizing a voting process is coming. Some countries have some digital voting (e-voting), but the security of that is a big concern.
The blockchain could potentially solve those security issues with digital voting. In every country, votes are managed, recorder, counted and checked by a central authority. Using blockchain voters will hold a copy of the record. It will empower them to do these tasks themselves. The history records could not be changed because other voters would see differs of changed record from theirs. That way, blockchain would shift power and trust away from a central authority to the community.
Impressive blockchain projects
Soon or later, the future will be distributed by the blockchain. For evidence just check some of the projects that are popular right now and you will get an idea how this impressive technology could significantly improve the world around us.
Ripple — real-time international payments
Ripple is a distributed financial technology that at this moment have a market cap around $6,733,523,729. Some will say that Ripple is not cryptocurrency, but it still has an amazing technology that could change the banking industry. It allows banks to send real-time international payments across networks, exploiting both the speed and security of the blockchain technology.
LAToken — trade real assets
They aim to create the platform that allows owners of some asset and investors to trade assets over blockchain. Real estate, stock options, art or antiques can be tokenized and then could be traded over the platform like any other cryptocurrencies.
Providence — physical crypto casino & resort
The first and only crypto casino and resort with a real location. The company is building a cashless resort in tourist center that will be powered only by cryptocurrencies. The idea is to give you an opportunity to spend cryptocurrencies in the real world, for services and goods.
The next tech age is closer than we think
The blockchain technology is just scratching the surface in many industries. If we consider the fact that most successful companies are investing millions into research in blockchain we can say that big breakthrough is near. We will see. However, a blockchain technologies as the primary tool for internet driving companies could be closer than we think.