You’ve probably heard the word Blockchain and cryptocurrencies a lot recently, and that’s for a valid reason. Blockchain and cryptocurrency is the most recent in a long line of technologies set to interrupt markets across the world, simply as AI and IoT have it earlier. But let’s talk first about Blockchain Technology.
Why is Blockchain Buzz-worthy?
In other words, Blockchain technologies is an incorruptible digital ledger. No bank or trusted administrator required. Blockchain technology is somewhat like having a notary public gift for each transaction, ensuring the collective book keeping is confirmed in any respected times. And since Blockchain ownership is decentralized, no one party is accountable, but instead, all transactions are publicly accessible and verified with mathematical principles which guarantee each block insists on each trade.
Blocks refer to every node in a constantly growing list of records, which are connected securely with cryptography. Essentially, a block can’t be changed without changing subsequent cubes, which will always result in a network bulk. Otherwise, the rest of the nodes would reject this shift because it fights with their own copy. Even though Blockchain dates back to 1991 in concept, that the initial distributed blockchain was executed by Satoshi Nakamoto in 2008 because a core part of the electronic money Bitcoin. One Bitcoin can be broken by 100 million units, and every unit could also represent value in numerous ways i.e.; money, property, votes, energy.
Bitcoins and the use of blockchain technologies made it the first electronic money to solve that the problem of double spending. Nevertheless, other forms of blockchain technology don’t require miners to help verify transactions. In case of a Blockchain 2.0 application developed in the year 2014, Ethereum injects minor applications into blockchain technologies to allow the typical money like tokens of Bitcoin to signify more complicated units of value like loans or bonds. From the capability to create smart contracts which initiate an autopay function once shipments arrive, to autonomous vehicles which automatically pay charging stations, blockchain technologys applications will continue to grow over that the next few years.
Where are we now?
The value of cryptocurrencies like Bitcoin and Ethereum really lies in that the level of confidentiality, authentication, and integrity they provide between sender and receiver. And banks are recognizing this potential, with about 15% of financial institutions worldwide expected to be with Blockchain technologies in some form through the coming year. In the end, a Blockchain can only be added to, not changed or removed. Let alone those manufacturers adding Blockchain technologies between their ERP system and parts supplier, allowing machines connected machines to safely order spare parts that arrive simply in time for an engineer to install.