What is blockchain?
Blockchain is a growing list of records, called blocks, which are linked using cryptography (prctice and study of techniques for secure communication in the presence of third parties called opponents).
A blockchain is decentralized, destributed and public digital book that is used to record transactions across many computers so that the record cannot be altered atendantly without the alteration of all subsequent blocks and the agreement of the networks.
Nowadays cryptocurrency has become a buzzword in both industry and academic. As one of the most successful cryptocurrency, Bitcoin has enjoyed a huge succes with its capital market reaching 10 billion dollars in 2016. It is one of the best example of Blockchian.
As it allows payment to be finished without any bank or any intermediary. Blockchain can be used in various financial services such as digital assets, online payment.
Examples of Blockchain Technology in Practice
1.Entertainment
Spotify: When spotify acquired blockchain startup Mediachain Labs it was to help develope solutions via a decentralized database to better connect artists and licensing agreements with the tracks on Spotify.
2.Social Engagement
Matchpool: Matchmakers are rewarded for making succesful matches whether its dating to freelancing to Uber and Airbnb.
3.Insurance
Accenture: With goals to boost efficiency and productivity within the insurance industry, Accenture builds blockchain solutions for insurance clients. They translate key insurance industry processes into blockchain ready procedures that set trust into the system.
4.Real Estate
BitProperty: Using blockchain and smart contracts, BitProperty wants to democratize opportunity aand create a decentralized society by allowing anyone anywhere in the world to invest in real estate.
5.Charity
Ubiquity: This global donation platform leverages Bitcoin and blockchain technology to provide greater transparency to donors by sharing real-time financial and project information. Save the Children, The water Project and Medic Mobile are few of the charities working with the BitGive.
Advantages of Blockchain
1.Reduced risk of data tempering and frauds as Blockchain contracts or networks cannot be breached.The data of Blockchain networks is only accessible to network members through private keys.
2.A trusted, distributed digital place for all kinds of transactions. with Blockchain you do bussiness with anybody whom you dont essentially trust and not worry about the transaction.
3.Middlemen-free transations.
4.Absolute transparancy.
Disadvantages of Blockchain
1.Higher network speed costs.
2.Slow transaction : Blockchain transaction go through 3 main steps that include: signature verification, consensus, and redundancy.
3.Regulatory uncertainties
4.Adoption concerns
5.System integration concerns
6.Significant energy consumption
Conclusion:
It is useful to understand blockchains in the context of bitcoin, but you should not assume that all blockchain ecosystems need bitcoin mechanisms such as proof of work, longest chain rule, etc. The Bitcoin is the first attempt at maintaining a decentralised, public ledger with no formal control or governance. There are significant chanllenges involved.
On other hand, private distributed ledgers and blockchains can be deployed to solve other sets of problems.
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