The main purpose of blockchain technology is to create a secure and decentralized digital ledger of transactions that can be shared and verified by multiple parties without the need for intermediaries like banks or other financial institutions.
This means that transactions can be conducted securely, transparently, and efficiently, without the need for a trusted third party to validate or settle them. Blockchain technology achieves this by using cryptographic algorithms to ensure that each transaction is authentic and cannot be altered or deleted, and by distributing copies of the ledger to a network of computers, making it highly resilient to tampering or attack.
The most well-known use case for blockchain technology is a cryptocurrency, but it has many other potential applications, including supply chain management, voting systems, and smart contracts.
Many people in the blockchain industry have a huge misconception of what its all about. We see numerous individuals associating the blockchain with making money, which in a sense, isn’t entirely wrong, but that’s not its true purpose.
The blockchain can be described differently according to many different people, but, all the blockchain is, is a fancy database. One that stores information and data across a decentralized architecture. The amazing aspect though is that its immutable and considered trustless.
Meaning, the stored information is not stored in one location but is instead stored across thousands of different locations. It’s immutable because once something is added to the blockchain, nothing can be altered or changed.
In essence, the blockchain has actually been around for numerous years, dating back to the 1990s, it is only now that it has become so popular as it is the perfect solution to initiate peer-to-peer transactions, without the need of an intermediary.
Building on top of its function
If we look at the way the internet is currently structured, we will uncover that it is comprised of a lot of information and data stored in central locations. For example, all the information we see on Facebook is stored on Facebook’s servers, and any data we (users) generate while using Facebook becomes the ownership of Facebook.
This is a centralized architecture and is also referred to as web 2.0. But, imagine if we could access similar services, but have our data stored in a decentralized/distributed network, and all the data we generate is owned by us.
Well, that exists, and this is due to the blockchain. If the entire internet is run on servers, and databases, then the blockchain can become a substitute to the current internet, with the advantage that users have ownership over everything they do.
Yes, cryptocurrencies are another great example of how blockchain is being used, and one that we can all use today. Any money we transfer over the blockchain is completely peer-to-peer, and any money we receive is owned and viewed by us.
The applications that can be applied to the blockchain are slowly becoming more than just a novelty, as we could eventually integrate blockchain into the public service sectors such as government, medical, transportation, etc…
The blockchain is a technology, and a solution, that will solve many issues that have plagued us online. Many people are still unaware of what the blockchain is actually used for, but, its technology is only just beginning.
Eventually, the world will be capable of seeing an integration between our offline lives with our online ones, with zero data issues. By applying this analogy to the future, we are certainly entering the next level of our digital evolution.
