Blockchain for Newbies
You know about blockchain technology and how it’s quickly revolutionizing the world as we know it. But do you really understand what it is and how it works? Blockchain is hyped as having the capability to be the next biggest thing since the internet. Here’s what blockchain is and why it’s quickly becoming the talk of the tech world.
What Is Blockchain?
The easiest way to understand blockchain is to think of it as a fully transparent and continuously updated record of the exchange of information through a network of personal computers, a system which nobody fully owns. This makes it decentralized and extremely difficult for anyone to single-handedly hack or corrupt the system, pretty much guaranteeing full validity and trust in each exchange of information. To be more specific, the blockchain network utilizes cryptography to record each transaction in chronological “blocks” and ensure that it can’t be altered or corrupted. This way, everyone can track down the information on each exchange without gaining access to any personal information. By providing a platform for trust-less public exchanges to be recorded, the possibilities are endless for its applications and how they can impact today’s society.
Think of blockchain technology as a kind of operating software, like MacOS or Windows, which would make a cryptocurrency serve as one of the many applications that can run on that network. Without the accompanying blockchain technology, cryptocurrencies wouldn’t exist in the first place! To summarize, cryptocurrency and blockchain technology are two very separate entities which are generally misinterpreted by many people who aren’t well-versed with crypto terminology. Blockchain is the underlying network which allows cryptocurrencies to exist in the first place, but what makes the technology so revolutionary is actually its potential to significantly improve all kinds of industries outside of just finance.
Advice: If you want to understand all the technicalities and specific details of how blockchain technology works, check out as many informative videos as you can. Reading up on something as complicated as this may not be enough, as analyzing this technology with a visual aid will fill in the gaps that may be difficult to clear up through simply writing. Once you feel that you’ve mastered it, try explaining it to your friend. Teaching a concept to someone else is actually one of the best ways to master it.
Why Is It Important?
In today’s society, blockchain has the potential to disrupt and revolutionize many industries. From the improvement of digital assets — namely cryptocurrencies — to voter fraud protection and supply chain advancement, blockchain technology can serve as the solution for many problems over a diverse set of industries across the world. What makes this so exciting is that this is only the start of what can truly be the future of technology. The record of each verified transaction, otherwise known as a distributed ledger, provides a decentralized platform for exchange that doesn’t require any middlemen like the government.
Currently, the internet functions as a platform to exchange information in the form of videos, websites, emails, and more. The next step in the advancement of the internet is exchanging and transferring assets of even more value like money, stocks, or even contracts. This is where blockchain steps in and facilitates this advancement of technology, increasing the efficiency of transactions and other services like shipping and delivery. Any kind of institution or service which functions in areas of high fraud can easily see benefits from the implementation of blockchain technology, making it more valuable than originally thought.
Advice: Don’t always associate blockchain with crypto! Blockchain has the potential to impact so many more industries than just finance, and most people who don’t know better will just want to pair the two together. Anyone who really gets blockchain will discuss its potential to change the way we do many things like vote or even order items.
Who’s Currently Using it?
Although still relatively new, blockchain technology has been implemented in various industries across the world. The most popular of these adoptions is cryptocurrency, starting with Bitcoin’s creation back in 2009. Since then, blockchain has been emerging into all kinds of spaces including cybersecurity and government, while still improving upon its own capabilities and technologies.
In fact, you’d be quite surprised by the growing list of corporations beginning to utilize blockchain technology. Companies including Walmart, British Airways, and UPS are among the businesses which have already established blockchain technology within their supply chain to better monitor and track their products. As an increasing number of prominent companies begin to adopt blockchain technology, it’s just a matter of time before it becomes an integral part of the efficient and beneficial technology of the future.
Advice: Don’t associate blockchain with only cryptocurrencies. Again, so many people who claim to understand how blockchain works won’t be able to tell you the name of a company outside the crypto word that uses it. Impress your peers by educating them on how companies can leverage blockchain to maximize efficiency within their internal supply chains.
Blockchain technology is still a new innovation which has a lot of room to grow. From what we’ve seen so far, plenty of recognizable businesses are taking advantage of it before it becomes too late — just another indicator of a promising future. For now, continue to understand its capabilities by monitoring its innovation and who uses it, because before we know it, blockchain technology will revolutionize the world.
How else is blockchain important to businesses in your industry?
What can it help to solve or improve?
Let us know in the comments.
