Blockchain will conquer the world?
Blockchains are like digital ledgers which are considered a technology for a decentralized world to make the transactions, dealings, etc. more trustable without the intrusion of any central organization. Bitcoin is a famous example of blockchain and its popularity. I would like to discuss the deeper details of blockchain and its potential, and an understanding of why blockchains are considered so valuable for the future.
Blocks in blockchains are like pages of an account book, and new blocks once attached to the blockchain contains the information of previous block and recent transactions which cannot be altered due to the peer-to-peer verification process in the blockchain. Every 10 minutes a new block is mined in bitcoin mining.
A mining process was introduced in Bitcoin to validate a block and keep the flow of currency in a controlled range. Such mining consists of a tough mathematical problem that needs to be evaluated at the cost of high processing power which involves a reward of BTC which keeps on decreasing.
So in a broad manner, blockchain consists of two processes, transaction and validation, without any intermediary and with complete confidence. Now this concept can be expanded where in addition to transactions, the smart contracts can be processed through blockchain as professed by the Etherium solution, and validation can be done by alternative mining which should not be so processing intensive. An assistive currency like ether can be used to reward the transaction validation and execution of transactions. Further tokens signifying different types of commodities can be issued in addition to normal transactions involving liquid money or bitcoins.
Such a decentralized system carries high potential in today’s world. People who want to avoid the eyes of regulatory agencies are also using blockchain technology extensively. Blockchain technology has great potential in supply chain mechanisms and other transactions particularly looking at its decentralized and peer-based trust system. The day is not too far when blockchain will conquer the world.