An Ultimate Beginner’s Guide to Blockchain
The internet is an anonymous place, and that anonymity makes things like buying good or procuring services from across borders and seas quite easy. Unfortunately, the same anonymity also makes it incredibly difficult to keep a record of the transaction that is not nebulous. Thanks to a new system derived from Cloud Computing, much similar to Cryptocurrencies themselves, that is set to change.
This technology is called Blockchain. And it follows a pretty simple scheme to get a retrievable, non-alterable account of all your online transactions via cryptocurrencies available for record.
When you transfer a sum of money via Bitcoin, Ethereum or another cryptocurrency to someone else, the transaction is recorded in a block of data. This block cannot be altered or tampered with, which is the base of the transparency of the system. The data does not use your real world identity either, if that’s what you prefer. The data is thus certain and definitive, yet respectful of privacy.
This block of data is then stored in folders. Several copies of this data are stored on multiple devices, giving rise to a chain-like structure if you trace the path of the information. This is what earns the system the name Blockchain. The chain helps ensure there are multiple copies of the data available, so that even if one device is inaccessible at any point of time, the data is still available. The data is reliable since the same can be verified across the links in the chain.
What’s more, the makers of the system have even figured a way to reward members of the chain monetarily. This sum can be treated as compensation for the CPU resources and electric power consumed in the process.
Blockchains have a whole other dimension where we may soon see them contribute significantly. One such unlikely sphere is voting. As vital as it is to any true democracy, voting and counting fraud is a reality that many budding as well as established democracies struggle with. Blockchain based online voting systems may bring a welcome shift in trends towards a more transparent and reliable system of representation, eliminating counterfeit votes as well as ballot stuffing.
The system can also benefit systems where booking services from the government may be involved, since it can eliminate bookies and fake representations as well as sale of anything from train tickets to contracts in the black market.
Corporations like Walmart too are waking up to the benefits this system could bring to them. Blockchain has the potential to be the inventory management tool the world has been lacking all this while, bringing us an easy way to order and sell raw material as well as finished product with every minute movement on the market and its trends. It could be the next market revolution after share trading! Isn’t that something?