In recent times, there has been so much buzz about “blockchain” and “bitcoin.” Obviously, any curious person will want to know what’s going on in the digitalized world of cryptocurrency.
Known as “distributed ledger” technology, blockchain is regarded by many as a powerful concept that has the potential to drastically change the world. Just so you know, it is the tech that underpins most digital versions of an asset – cryptocurrency.
Due to the unprecedented returns most early adopters made from their investments in certain digital assets, i.e. cryptocurrencies like Ethereum and Bitcoin, the tech has been making headlines. Just so you know, many folks made astounding returns on these assets.
However, there are a lot more intriguing stories to learn about the distributed digital ledger system which is basically the underlying technology. Basically, the blockchain technology has been established as the mainstay of a new type of internet. So, rather than merely copying data, this new system is helping to enhance the seamless distribution of digital information.
It may interest you to know that the tech community is looking beyond devising the blockchain for digital currencies (such as Bitcoin) alone. There are other potential areas in the industry that are currently being explored for the technology.
Understanding the technology
Almost everything done today requires the development and movement of data. These include the use of commercial transport, traveling by car, voting, the use of credit cards, buying houses, and even getting ill. It is based on these principles that the blockchain technology is seeking to introduce new ways of transferring and storing that data.
So rather than holding the data in a single location, the blockchain technology is basically helping to atomize and distribute the information across a large network of numerous nodes that are all held together with clever cryptography. Just so you know, there are lots of potential opportunities that can be derived from this structure.
Why revolutionize information?
Now that you already know how data is getting revolutionize through blockchain development, you may be wondering if the current means of storing information is defective. In the first place, is there any need to revolutionize information?
Currently, most of the data on which most human lives and activities are based on are stored in large chunks in one place which could be in the cloud, on a private server or on paper in archives or libraries. For the most part, this is okay but it is important to note that these methods of information storage are prone to attack.
In recent times, there have been series of news on how the personal data of numerous consumers such as credit card details, driver’s license numbers, Social Security numbers and other personal information have been stolen from various organizations.
Apart from leaving many people vulnerable to identity theft and fraud, these hacks are also having serious consequences on the society today such as suicides and other compounded problems. Thanks to the recent blockchain development which is helping to provide relevant solutions to correct these breaches.
While most blockchain solutions have not yet succeeded in preventing hackers from gaining access to peoples’ computer systems with default passwords, they are however helping to minimize the rate of data loss to a large extent. As a matter of fact, it has become nearly impossible for hackers to attack a blockchain-enabled system via sheer computing power (brute force).
Simply put, blockchain is providing an improved form of cybersecurity. Ultimately, what the technology does is to break the database, on which information is stored, into millions of tiny pieces and distribute them across a myriad of computers thereby making it difficult for hackers to access whole data.
This is the “distributed” aspect of the tech that gets more secure in complexity. Arranged in a web of interwoven chains of data, every part of the structure tends to be spread across the network. As long as you can gain access to the Net, you should be able to use this technology to make transactions once the blockchain development becomes mainstream.
In a bid to speed up settlements and cut costs, several tech firms, banks, and insurers have already begun accepting this technology which is significantly causing a rise in the amount of GDP held by the blockchain. Currently, there is an open question as to which technology will lead the way out of the different blockchains out there.
Despite the giant strides attained by Bitcoin and Ethereum, it important to note that the actual blockchain technology needed to transform the network is yet to be implemented. It is very likely that others will simply fade away one turns dominant as is the case with MySpace and Orkut when Facebook turned dominant in the social media space.
What will likely happen in years to come?
From all indications, blockchain solutions will lay the foundation of how people and organizations transact business in the future. There is currently a huge scaling problem among the most widely used and popular blockchains – Bitcoin and Ethereum.
There is still more to achieve with these blockchain solutions. This is because these blockchains slowly process transactions as a result of their networks’ ability to consume large amounts of power. In order to overcome this scaling issue, these networks need to be designed to enhance fast and speedy transaction processes as fast as credit card transactions.
For security, there is the need to normalize blockchain development as the gold standard. As a base for currency, there are still certain challenges that will have to be tackled headlong. Today, there are a few big banks seeking to build their own private blockchains with many having departments specializing in cryptocurrencies.
While there are still much to achieve with these blockchain solutions, there is every possibility that they will usher in the way for cryptocurrencies to become the main source of money. No doubt, this technology will become so prevalent that people will rarely notice when they begin to make use of it. As a matter of fact, it will not only be used to secure contracts but also capture identity.
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