What is blockchain?
Blocks are based on Merkle tree data structure (hash trees), with a large number of distributed nodes collaborating to form a chain. Block-chain combined forms a distributed ledger technology which promises transparency and low-cost transactions rates. Blockchain technology enables transactions to cost way lesser than generic bank wires, with cheaper transaction costs it also makes sure no one party can erase or modify data stored on the ledger.
Blockchain has been all over the news since past two years for one of its greatest implementation, bitcoin, surpassing market capitalization of VISA overnight. But, Bitcoin is just a basic application of Blockchain, virtually, Blockchain has the means to redefine today’s internet.
Who is behind blockchain?
Most of you may have already heard about the claimed inventor of the blockchain, for those who haven’t it’s a group or person called Satoshi Nakamoto. While all this may have been a well thought of gamble, the only reason why no one would claim it is for the uncertainty blockchain holds. For a technology like blockchain, it was critical to not have an authoritative/inventive presence over it, enabling it to go further and higher than claimed technologies owned by some petty conglomerate/inventors, achieving a global stature and mass adoption.
Let’s do one better, why is blockchain?
Blockchain has proven to solve a lot of our real-world problems since its inception in 2009, while blockchain is nowhere nearing its full potential, cryptocurrencies have just shown the world a glimpse of blockchain’s true capabilities. The combined market capitalization of all cryptocurrencies is a staggering $419 billion, to put it in perspective its 1/4th the GDP of Canada(holding 10th place in top 10 countries ranked by GDP).
There are a lot of other possibilities with blockchain, they include but not even closely limited to:
• Smart contracts
• Decentralized internet
• Cheaper payment protocols
• A whole new stock market
• Authentic voting in democracies
We would soon witness decentralization taking over almost every technology in the world. But is it really worth wasting our most precious resource, energy, for the sake of decentralizing systems?