Blockchain: Next Generation of the Internet

Prakhar Singh
Oct 2, 2018 · 5 min read
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What was in that white paper?

The white paper described the first peer-to-peer decentralized monetary system and the technology behind it. Seemingly, Nakamoto was not happy with the current state of our financial system. The financial crises of 2008 showed just how ineffective the traditional model was and Nakamoto wanted to create a system where a trusted third party was not required to carry out a transaction. So he did. It was called Bitcoin.

So what exactly is Bitcoin and how does it work?

The best way to understand what Bitcoin is to think of it as an internet currency which isn’t owned by anyone. It’s not poles apart from traditional currencies, but it does do a few things differently. The two main differences being:

  • The transactions are carried out anonymously. Bitcoin uses cryptography to encrypt every single transaction.

What is Blockchain?

Blockchain is the technology that powers Bitcoin. But it’s also a lot more.

Why is it such a big deal?

Blockchain took the world by storm because of the sheer number of new doors it opened up. A decentralized peer-to-peer system (which blockchain is) isn’t something new but the real-world applications of such a technology and their feasibility was never really tested at a large mainstream platform before (until Bitcoin, of course).

Current State of the Internet

Our current model of internet works on the principle of sharing multiple copies of the same data with different users on a network. You join a network like Twitter to share your copy of a picture with hundreds or even thousands of others. Each person gets access to a copy of your data. This idea expands to everything on the Internet. From emails, videos on YouTube, or any other data for that matter.

Blockchain and the Problem of Double Spending

The problem of double spending simply refers to the problem of having two copies of something that should be unique. Think a house or car or any real-world asset — you wouldn’t want the other person to continue owning the house you just paid for, right?

The Next Generation of the Internet

Blockchain technology has been called the next generation of the Internet by many experts and with good reason. Double spending was one of the major hurdles in the development of digital currency and one day in 2008, it wasn’t a problem anymore. People could now transfer money, trade securities, buy and sell assets, and so much more using digital currency without an intermediary. But the most important thing in all of this was the safety and convenience you would get by using digital currency.

Wrapping Up…

Incorporating blockchain into the mainstream Internet is the next step. Our data needs (in the fields of medical, finance, tech, etc.) are changing rapidly. This change calls for an evolution of the Internet — to make it better suited for this new world.

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Prakhar Singh

Written by

Narrative designer, copywriter, and web content connoisseur. Check out thewriterman.com to learn more about me.

Data Driven Investor

from confusion to clarity not insanity

Prakhar Singh

Written by

Narrative designer, copywriter, and web content connoisseur. Check out thewriterman.com to learn more about me.

Data Driven Investor

from confusion to clarity not insanity

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