Is Blockchain The new Internet?
Blockchain is undeniably genius invention – The Brain Child of a group of people known as Satoshi Nakamoto. Since then it has evolved into an enormous phenomenon where people still ask questions about “What is Blockchain?”.
By allowing digital information being shared or distributed by not copied, Blockchain has created a new type of internet. Originally devised for the Digital Currency, bitcoin and Cryptocurrencies. The Technology industry is finding new scope of applications of this technology and surely, it has become one of the most widely used terms on the internet. From Healthcare to Internet of Money, Blockchain has shown promising characteristics. The applications of this technology is still being implemented into various innovations such as a Blockchain based state, “Decenturion”.
Bitcoin has been called as “The Digital Gold” and for a good reason. Till date the total value of cryptocurrency industry is close to $587 Billion according to the data from the industry website coinmarketcap.com. Blockchain can make other types of Digital values like your car, you don’t need to know how blockchain works to use it. However, basic understanding of this technology shows why it is considered revolutionary.
Let’s step into the Blockchain Guide.
What is Blockchain Technology?
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Don & Alex Tapscott, authors Blockchain Revolution (2016)
How does Blockchain work?
Let’s imagine a spreadsheet that is duplicated a thousand times across a network of computers and the network is designed to update this regularly. This is the basic understanding of Blockchain.
information held on Blockchain remains shared and Continuously reconciled database. This is the absolute way that the benefits of Blockchain technology start. The Blockchain database isn’t stored on a single location, the record is made truly public and easily verifiable. There is no centralised version of this information that exists for a hacker to tamper with, the information can be easily verified as it is hosted by millions of computers simultaneously, and the data is accessible on the internet to anyone, it is public.
Blockchain Durability and Robustness
Remember the era of internet, Blockchain is similar to internet in that has built-in robustness. By storing Blocks of information that are identical across its network.
The Blockchain cannot be:
– Controlled by a single entity
– has no single point of failure
Bitcoin was launched in 2008, and since then, this technology was being operated without significant disruption. Today the problems associated with bitcoin have been due to hacking or mismanagement. In other words, these problems come out of the bad intentions and human error, not the flaws in the underlying concepts.
The Internet has been durable for 30 years and still being developed. It’s the same track record that is similar which motivates development in Blockchain.
As revolutionary as it sounds, Blockchain truly is a mechanism to bring everyone to the highest degree of accountability. No more missed transactions, human or machine errors, or even an exchange that was not done with the consent of the parties involved. Above anything else, the most critical area where Blockchain helps is to guarantee the validity of a transaction by recording it not only on a main register but a connected distributed system of registers, all of which are connected through a secure validation mechanism.”
–Ian Khan, TEDx Speaker| Author | Technology Futurist
Transparent and incorruptible
The Blockchain network exists in a state of consensus, one that automatically checks itself in every ten minutes. It’s a kind of self-evaluating system that maintains the integrity of the whole network. Each group of transactions is referred to as block. The two important properties result from this:
1. Transparency data is embedded as a whole in network, by definition it is public.
2. It cannot be corrupted altering any unit of information on the blockchain would mean using a huge amount of computing power to override the entire network. You’ll need a very powerful supercomputer to do that better than Titan.
Theoretically it is possible, but practically not. Taking control of the system to capture bitcoin would mean destroying their value.
A network of Nodes
A network of Computing “Nodes” makes up the Blockchain. Computer connected to a blockchain network using a client that performs the task of validating and relaying the transactions gets a copy of Blockchain, which gets downloaded automatically upon joining the blockchain network.
Together these nodes create a powerful, secure second-level network, a very different vision about how internet can function.
Each node is called administrator of the Blockchain and joins the network voluntarily this is how the network is decentralised. However each administrator handling the node has a chance of winning bitcoins.
Nodes are said to be mining bitcoin. Each one is competing to win bitcoins by solving computational puzzles. Bitcoin was the reason why blockchain was originally conceived. Now this technology is considered in many industrial applications.
There are estimated to be 2000+ bitcoin like cryptocurrencies each having their unique USP, already available, as well as other potential adaptations of Blockchain technology versions active or in development. Asynchronous Natively Verified Intertrade Ledger (ANVIL) is a very good example being developed by CryptX Financial.
The Idea of Decentralization
Blockchain by design is decentralised technology. Anything on that network follows the same characteristics. By creating a new way to verify transactions aspects makes the traditional ecommerce system unnecessary. Stock market trades on the system become simultaneous on the Blockchain for example keeping the record of land registry and decentralization is already a reality.
Al global network of computers uses Blockchain technology to jointly manage the database that records the cryptocurrency transactions like Bitcoin. The network is managed collectively managed and not by a single authority. The network operates on peer-to-peer (p2p) basis.
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We give all the credits for the article title to the Dummy Series. We cannot help but use it.