What is blockchain? Is it going to be the future?
Before going any further, let’s discuss the definition of blockchain. It is a type of database that is mostly used as a decentralized ledger that holds all of the transactions made across a peer-to-peer network. To put it in a simpler form, it basically stores the list of transactions that are made throughout the internet. The term blockchain originated from the way data are handled in that database. As new data comes in, it is entered into a new block. Once it is filled with data, it is then chained with other previous blocks so that the data are chained together in chronological order. Hence the term blockchain was created. One of the unique characteristics that it has is that they are independent of any central banking system.
This means that all the transactions made does not depend on central banking authority, instead it depends on the users of the database. For example, if someone creates a new currency called an X currency, how can you trust that person to not give them a million amount of currency X. To avoid these problems, all transactions are made transparent, meaning that all users have the same copy of all the transactions. Thus, it becomes harder for people to hack or steal because they could cross-reference with each other and could easily locate who has altered the block or transaction, and that person becomes the suspect. Hence, blockchain was first created for administering cryptocurrency, specifically for bitcoin. However, the use of blockchain is not only limited for cryptocurrency, as a matter of fact, a variety of companies have utilized blockchain in their business.
The key idea of blockchain is to be able to track and locate things easily; each block is given a timestamp and transactions are made transparent. Some companies including Pfizer, Unilever, Siemens, IBM, and a host of others have utilized this technology by incorporating it into their system. For example, Unilever have been running trials to implement this into their financials, allowing them to easily track payment between consumers and other buyers. Furthermore, blockchain can also be used in healthcare, specifically to store patients information and their medical record so that it is more secure since it is encrypted and can only be accessed by specific individuals. These are only some of its applications, and you will see its implementation in a lot of things in the near future. Who knows what the future holds. Only time will tell.
