What is blockchain?
Though the blockchain was originally created to fuel the cryptocurrency Bitcoin, the tech community has found other potential uses for this revolutionary invention.
But wait…
Blockchain is a distributed ledger where data is stored in blocks and chained together in order to create a continuous linkage of information. It is unique because information is distributed among a large network of computers and is not centralized to one main source. Given this, once data has been recorded and added onto the blockchain, it is nearly impossible to tamper with without rendering all following blocks invalid. Through this model, the blockchain provides a secure and immutable space for all transactions.
Since the blockchain provides a secure space for data, it has been programmed to track anything of significant value such as financial records, medical records, land titles and contracts. Which may make you think… there are already standards and systems set in place to facilitate such transactions, what makes the blockchain so groundbreaking?
Unique functions of the blockchain
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- Data tracking and storage
As the blockchain stores information in blocks and in batches and is continuously linked together in a chronological order, once a block has been added to the chain, data cannot be overwritten nor altered. Instead, users add another block, Block B, with the new information, indicating that a certain piece of information in the original block, Block A, has been changed from X to Y.
Sounds familiar? This concept goes back to the centuries old system of the the general financial ledger where data changes were tracked over time. The trouble with the general financial ledger system, which evolved from a book to a computerized spreadsheet, was that it was centralized to one main source. Giving this main source the control to input figures without a set validation system from peers — this outdated system puts information at high risk of data tampering. The blockchain tracks changes differently. Designed for data to be shared among a large network of computers, information is decentralized and has to go through as series of validation to be added on the chain. With this, no one person has control over the ledger, which reduces the risk of data tampering.
2. The blocks on the chain are validated, hence, data is trusted
Because the blockchain is a decentralized system and is not controlled by a single source, a series of work needs to happen in order to add a block onto the chain.
First, a cryptographic puzzle must be solved, creating the block;
Secondly, the computer that solves the puzzle shares the solution to all other computers in the network, this is called proof-of-work.
Lastly, the network will verify the proof-of-work and the block created will finally be added to the chain.
As these verification steps are facilitated by many computers, the blocks added onto the chain are ensured to be correct and trusted.
3. No more middlemen
Nowadays, we rely heavily on third parties to facilitate transactions on our behalf. However, in the blockchain ecosystem there is a “trustless” system where no person needs to trust anyone to handle their data.
Think of it this way: in a dispute between two parties over a property, instead of trusting a lawyer to handle your records and confirm if a property was in fact yours, you can store your land title on the highly secured blockchain and directly confirm your right with the opposing party. By doing so, you would cut the need of a lawyer or any other intermediate to facilitate the dispute.
Not only can you save costs on professional fees, you save yourself from the inconvenience of liaising with someone who would easily just confirm your data with the other party.
In this sense, many big industries will be disrupted because of the trustless ecosystem of the blockchain.
What else is the tech community using this technology for?
A handful of companies have been using the blockchain technology for different industries and uses — including XONIO, a Singapore private limited company established to manage and supervise all aspects of the XONIO project. Want to learn more about the XONIO Opportunity? Check this out.
Through XONIO, these individuals are given access to the blockchain technology and will provide a mechanism that will substitute for cash to fuel microtransactions such as digital goods and cryptocurrencies.
XONIO was created with users from emerging countries in mind — where 95–98% of the market are on prepaid mobile airtime and most are unbanked.
By simply converting prepaid mobile airtime, users can access digital good such as eSports game credits, grocery gift cards, digital gift certificates, microinsurance, eMovie tickets. Likewise, XONIO Tokens are also made available to telco prepaid users so they can easily enter the token economy by virtue of their airtime credits. Visit our post on XONIO Tokens for more info.
For more info, visit www.xon.io. Join the community on Telegram.
