Blockchain Technology 101 – Will It Really Changes The World

February 25, 2018 Facebook Twitter LinkedIn Google+ Blockchain

What is it?

The blockchain technology is the revolutionary and disruptive piece of tech that powers the whole cryptocurrency industry. It is a public ledger system upon which transactions and transfers of anything of value are recorded, from money, to tokenized titles of properties as well as other things, in an open, verifiable and completely decentralized manner, where the copy of the blockchain is made accessible to anyone with a computer and access to internet. The blockchain technology is that new piece of technology that seeks to do for the access of services and transfer of value from any part of the world, what the internet did for the unfettered access of information


How it Works?

The core principle behind the blockchain technology is the decentralization of all access to the means of transfer of anything of value which for the first time allows two individuals for example to transfer value between one another in a fast, and secure manner without having to resort to banks or other expensive middle men.

How the blockchain works is pretty straight forward, any one person can easily set up their own end of the blockchain by acquiring the property of choice that is being transacted on any given blockchain, and store them in unique personal storage facilities known as wallets. At any given time when this party wants to send all or part of their digital asset to a second person at the other corner of the earth, all they need to do is to access their wallet and send the given amount of the thing of value concerned, using the wallet address of the recipient.

The crux of the blockchain technology depends on the process through which transactions get verified on its network. There are dedicated computers that form this network that are spread all over the world, of which anyone can become a member of. These computers are known as “nodes” and constitute the mining party where their job is to individually and independently verify the validity of the transaction that was initiated and the majority of the result gotten is what becomes added on the blockchain. These miners carry out this verification service for the blockchain in order to maintain its integrity in exchange for fees that are allocated to them by the network.


Opportunities and Limitations

The opportunities that abound for the blockchain technology in the modern life can never be overstated. This is a technology that could literally turn whole systems upside down and is often referred to as greatest technological breakthrough of the 21st century. The blockchain technology’s reach is not solely for the cryptocurrency world (making virtual alternative money), but its application goes wide with areas such as healthcare, insurance, supply chain, energy consumption, elections and governance. There is virtually no sector of business or sphere of life that the blockchain technology does not have something to offer, in order to improve the way it’s run and offer a more transparent, secure and fairer ecosystem compared to the present centralized systems which force the user to blindly trust the conglomerates that run them.

Despite the countless possibilities that abound for the blockchain technology, it remains a fact that its adoption is widely slowed down and sometimes hindered by the lack of any regulatory framework in the whole world, regarding to the existence of this technology and how it’s should be run. This creates an atmosphere of uncertainty around the technology especially within the cryptocurrency niche where it is under the constant threat of the possibility of a government crackdown as has been witnessed in China and now South Korea.