“Well I have heard of Blockchain Technology and believe that it is related to bitcoin, but I would like to know what it is exactly because I really don’t know what it is about!” Well, you should know that blockchain technology is everywhere in the business world - from marketing to finance. “Wonderful, but I would like to more about blockchain technology and how it is used!” You are in luck because the blog will answer these basic questions regarding blockchain technology.
What is blockchain technology?
If you read any blog or literature online discussing blockchain technology it will provide you with the following definition: ‘Blockchain technology consists of facts and information which are grouped together in data blocks. These data blocks are identifiable by a unique timestamp and linked together using continuous linkages of cryptographic validation and principles. The blocks are stored on various computers and other digital devices in ‘the network.’ In other words, blockchain technology is a group of related information that is assigned a unique timestamp at the time of creation and is interlinked by IT-related principles and stored on a digital device.
“Wow, I never knew that data could be sorted out and grouped together into groups based on certain common characteristics, protected and identified by a unique time stamp, and then stored on digital devices! That is amazing!” If you thought that was amazing, what you will read next will really impress you! It is this linking of related information which allows users to remain anonymous and securely share related data. It is useful in this instance - you have come into a large inheritance and need to prove that you are the legitimate heir. If you use the information contained in blockchain technology, you can completely eliminate the ‘middleman’ who in this case would be the lawyer. Blockchain technology’s main purpose is to eliminate the need for a third party in any digitally related transaction.
Howdoes blockchain technology keep information secure?
“Youmentioned that blockchain technology keeps information secure, but I want toknow how it does this!” The answer is simple. The firstthing to know about blockchain technology is that its data is stored on ablockchain platform. This makes it veryeasy to encrypt and hence keep the information secure from unwantedoutsiders.
BlockchainTechnology’s many uses
“Nowthat I have a basic understanding of blockchain technology, I would love toknow how it is used in the professional world!” Well here is your answer. Blockchain technology is completely securebecause it is identifiable by unique time-stamps which makes it easy to encryptand therefore protect the information contained in it on various digitaldevices across a network. Information on this network is completely securebecause would-be hackers would have to break through the entire network ofdigital devices (including computers) in order to access the information andthis would be impossible to do so. Eachblock of verified technology has a unique record with a unique history. The hacker would need to know all of thepasswords for each digital device storing different blocks of information andwould need to falsify all of the records on this vast network. Obviously, this would be impossible todo. This type of technology has manyuses, including:
- Smart contracts
- Digital voting
- Distributed storage
- Unmatched IoT security
- Supply-chain communications
Each is explained in more detail below:
“Hey wait,what are smart contracts, what are they used for, and how does blockchaintechnology help keep their information secure?” The answer is: smart contracts are used when assets (like money) are transferred fromone business entity to another on a daily basis. But they have far more diverse uses thanthis. Smart contracts can be used whenmoney is being exchanged from the insuree to the insurer when insurancepremiums are being processed. However,the uses for blockchain technology do not end there. They can also be used to exchange money,information, and other valuable assets when legal processes are beingexecuted. A good example would be thetransfer of funds from the buyer to the seller when a real estate deal is‘closed and goes through!’ In thisinstance, the real estate agent or broker (the middleman) would be completelyabsent from the scene. The real estate agent or broker gets a 6% commission onthe total selling price of a house when it is sold. These contracts are useful when transferringmoney and other assets in crowd-funding agreements. Smart contracts are expected to replace thirdparty lawyers who currently take a huge ‘cut’ in legal and financial processes.
Blockchain technology promises to change theway information is stored about political candidates during variouselections. It promises to make digitalvoting an easy and convenient process by storing sensitive and confidentialinformation regarding political candidates on digital devices and making itcompletely confidential. This will allowpeople to vote for a candidate from the convenience of their own home insteadof going to a voting center and casting their electronic votes there. “Great,I can vote for my presidential candidate from the convenience of my iPhonewhile watching The Big Bang Theory in the comfort of my own home! I am beginning to like blockchain technologybecause it seems to make life easier!”
Aside from making the voter’s life easier, blockchain technology addresses a prime concern of political information which is keeping it secure and confidential. Hackers could easily access this information in those instances. This gave them great opportunities to tamper with this information and hence skew the election results. Blockchain technology keeps voter information regarding preferences for political candidates secure and confidential on the various digital devices used. It offers tremendous scope for countries that have had traditionally low voter turnouts because they can use technology to encourage and get greater voter participation.
Did you know that blockchain technology cankeep information stored in your dropbox secure and confidential? “Wow,really? I never knew this, please tellme more!” Blockchain technology isperfect for storage services which store large quantities of unique anddifferent but related and interrelated information. These storage services include Dropbox andGdrive. Dropbox and Gdrive store thistype of information in the form of information ‘files.’ Though these services are great for storingvast amounts of information, this information is often sensitive and must bekept confidential. However, many governments do not understand this and oftenpressure the services into disclosing and revealing personal information whichis sensitive (like credit card and social security numbers) to them(governments).
Dropbox, Gdrive and other services areincreasingly and heavily relying on Blockchain technology to group related datain files together and store it on many highly encrypted and extremely securecomputers and other digital devices on their vast network. This will make it impossible for eithergovernments or hackers to access this information.
Have you heard of unmatched IoT security? “No, I have not. What is it and how can blockchain technology helps keep it secure?” Hackers have had an easy time accessing the information available in unmatched IoT security. However, when blockchain technology is used, the information is protected and kept confidential because of its multiple layers of distribution channels that exist over all of the digital devices in its vast network. Since the information is assigned a unique timestamp, it can easily be tracked, validated, and verified any would-be hacker would need to access all of the digital devices on the network. Access would only come by knowledge of all of the passwords which no hacker would know!
The introduction of manufacturing powered byelectricity in the early 20th century completely revolutionized manufacturingprocesses because it allowed the same machine to produce different items. Additionally, many firms manufacture many ofthe components found in items currently bought like cars and iPhones. Many raw material and logistics suppliersmust be involved in the process and this leaves a large scope for the resultinginformation to be accessed by hackers. If a hacker were to access information in even a small section of themanufacturing chain, it could lead to the unraveling of the entiremanufacturing chain.
Blockchain technology guards against this by converting supplier and logistics-related information into secure and auditable digital information. This information is invaluable because it tells management and higher leadership the exact stage a particular product lies in the entire value-added manufacturing process and chain!
“I have heard of Bitcoin, but I am confused by it. I was wondering if someone could explain to me how blockchain technology is related to Bitcoin!” Bitcoin is a currency that is created and kept secure by the Internet. This is the reason why Bitcoin is often referred to as cryptocurrency. Because blockchain protects information contained on different digital devices in a network. These devices are often referred to as ‘digital ledgers.’ Another term for blockchain technology is ‘distributed ledger technology.’
Bitcoin was created after payments made in various national currencies were rejected by many banks around the world. The result was the easy transfer of payments in any national currency between multiple parties around the world. Blockchain technology is valuable in this instance because it protects international digital currencies and the information associated with them.
Blockchaintechnology is on your side
“What does the statement ‘blockchain technology is on your side’ mean?” The statement refers to the fact that this type of technology keeps sensitive information on digital devices that are far-flung onto a global network secure and confidential. This reassures you that only authorized parties can access your personal and sensitive information. Knowing this, why don’t you invest in blockchain technology today?