Blockchain Everyday
The application of Blockchain Technology.
Firstly we need to understand that Blockchain Technology is still in its early stage. Its application and use cases will increase and diversify as we develop and use Technology.
“ Technology evolves over time”
A synonymous example would be the internet. In its early stages, all it did was send 5MB in 24hrs and you would just hope no one shuts off your system during a download.
It faced a lot of criticism, mainly from industries it would disrupt. It also faced distrust from people who were uneasy with change and of course fake news! (It was a thing back then too)
Today we live with the evolved internet. It’s wireless, faster than ever, and safe enough for you to store and share your digital assets on. If people back then decided “there is no point in developing the technology”, would you be reading this today?
You will find numerous explanations for Blockchain Technology & its uses online. Here is another perspective, because everyone is different.
Everything you own, money, property, cars written in ledgers(notebooks).
A banknote has no value unless the serial number on it is entered into the ledger of the National Reserve. (Basically, that’s how money is made)
Let us call them notebooks, for now, so we all are on the same page.
Now Mr.Dave in the USA sends $1 to his friend Mr. Ming in China.
Sending a dollar from the USA to China does not mean stuffing that note in an envelope and shipping it over with a stamp.
It's as basic as that but with a lot of friction. US, China and everyone in between has a notebook, Including Dave and Ming. Everyone in between includes The State, banks, service providers(money transfer agents, foreign exchanges), facilitators, financial institutions, regulators, etc.
So a lot of notebooks!
Everyone will have to make a note about this $1 transaction.
This consumes more time & cost more and than the value being transferred.
What Can Blockchain Do For Us Here?
Everyone mentioned above has a copy of just one notebook.
So anytime there is an entry, the concerned people only need to verify that particular entry. Once it’s verified by everyone, the dollar has changed ownership
The Currency
Cryptocurrency is just a use case of the technology, saying Cryptocurrency is the Blockchain is like saying email is the entire internet. There is an extremely strong justification for a form of incentive to existing within a Blockchain.
It requires processing power, electrical power, time & money to function, these cannot be sourced from a single provider as it would make it centralized. Miners are the people who provide these resources & maintain the chain. The currency is given to the miners as an incentive for maintaining the chain.
Okay! I know how it works , Where can I see it in action?
Like the cloud, the blockchain is a distributed system. The primary difference between the two is that data distributed over the cloud is stored on one company’s centralized set of data centers, while data on the blockchain is stored across a community of servers.
Application
Blockchain is applicable in daily life. But it mainly works behind the scenes, Regardless the change will be felt.
Let's look at a functioning blockchain Startup called Fluidity. Their work in real estate is an excellent example of using the blockchain for distributed ownership.
A building in Manhattan New York, worth $36.5M is now on a blockchain.
12 Rooms/flats(Units) each costing $2.35M & $3.7M for the penthouse.
Anyone in the world can own a part of the building by purchasing tokens. You don’t need to buy An entire room or even half of it. You can own as little like a brick. (Theoretically)
An Andy Warhol painting was tokenized, You can own part of this painting as it sits in an art gallery, growing in value. As the value increases so will the value of the token.
Five farmers own a plot of land each, It would be expensive for each of them to own a tractor as their production quantity is limited. The tractor will have no utility after the harvest. These 5 farmers can pool in and purchase one tractor together and let the blockchain handle the rest. The tractor is rotated among the 5 farmers since there is no single authority, the allotment is calculated and fair.
These are three different scenarios where distributed ownership is handled by the Blockchain. This is possible with our traditional system, but the blockchain avoids unnecessary effort & friction.
I will be writing more on the application of blockchain in different scenarios & fundamentals on which the technology is based on. Stay Tuned!
Want to know more? Check out how blockchain is changing gaming!
and What’s up with Google?
