The internet is flooded with cryptocurrency blockchain topics because it is the hottest trend that can totally change the way how people use the internet. When the cryptocurrency was introduced, blockchain was considered a digital ledger book to manage transactions; however, the perception changed when it became significant for maintaining security as well as transparency. Cryptocurrency is gaining worldwide popularity in a concise time period, therefore; the main focus of blockchain development is towards it. Nevertheless, you cannot deny this fact that it can be utilized in a much better way by implementing in other fields that you will read in the below article. Before going further, it is important to understand what actually blockchain is?
What is Blockchain?
As illustrated by its mane, it is a chain of blocks that store pieces of information blockwise. The main aim of a Blockchain is to validate a transaction by using peer to peer network of computer systems. You can consider it as a building block of a new kind of internet that maintains transparency to distribute information publically but prevent it from being copied. Once the information is stored in a block, it cannot be reversed. If someone attempts an effort, he/she will expose. It was made for securing digital currency transactions, however, comprises much broader possibilities. One can create new blocks of information, but the previous blocks that contain information cannot be edited or removed. For maintaining the utmost security from malicious attacks, complicated mathematical equations needs to be solved and approved by the rest of the network in order to complete the transaction.
How Does Blockchain Work With Cryptocurrency?
You may consider cryptocurrency as a digital currency that has no physical existence. It is not under the control of a single person or organization because of the decentralization concept. Cryptocurrencies like bitcoin, ethereum and Zcash are distributed on a network of thousands of computer systems without any central server. It works with the help of a peer-to-peer network that doesn’t require any third party trust like banking or social media. Cryptocurrency is meant for maintaining utmost secrecy while making any transaction. Due to the decentralized network, it doesn’t require any personal information such as name or address to complete the transaction.
When a person requests for a transaction, it is broadcasted on the peer-to-peer network in which thousands of computer systems are connected. These computers are also known as nods. The processing power of these computer systems validates the transaction by solving complicated mathematical equations. Those who work on validating the transaction are rewarded with a certain amount of cryptocurrency. The verified transaction of blockchain doesn’t only contain digital currency, but you can also add contracts, records, encrypted messages and data backups, etc.
Robustness and Reliability of Blockchain
While talking about the robustness of blockchain, keep on thing in mind that it doesn’t require any external source for safety. The inbuilt structure of blockchain is capable enough to maintain security level and transparency. It comprises a self-auditing system that updates after every 10 minutes to reconcile the transactions. It has not any central harnessing unit, it means, anyone as a single entity can control the transactions.
Hashing is the core security feature that ensures safe transactions on blockchain without requiring any banking system. Hashing is capable of taking the input of any length in a string, buy its output always comes back in 256 bit which is a secure hashing algorithm (SHA). The input data of enormous size sometimes become difficult to remember, its hash of 256-bit length is easy to store and track.
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Main Reason behind the Invention of Blockchain
Double spending of digital currency was the core issue for which blockchain was invented by Satoshi Nakamoto, a Japanese genius mind. The term double spending means using the same currency more than one time to buy different products and services. In the case of physical currency, you pay a certain amount of money to avail the desired product or service. Once the money is spent, it will not return back.
Nevertheless, cryptocurrency has no physical existence, and it is transferred virtually from one account to another. Therefore, the risk of copying it and using somewhere else always remain higher. The blockchain is invented to counter such kind of issues with the help of the validation process.
Miners are present everywhere who use a network of computers called nodes to solve the mathematic equations. When the first transaction is confirmed, and you try to spend the same currency again, it will go into the unconfirmed pool of global transactions. After 10 minutes when the new block is added in the blockchain, your first transaction will get more validations than the second one because miners will identify it is invalid.
Significant Uses of Blockchain Apart From Cryptocurrency Management
Blockchain works on a decentralized network that ensures equal control for every user who is using this service. Therefore, it has the capability of neutralizing the monopoly of IT giants who are currently using the personal information of people to manipulate own agendas. It is an excellent tool for transparently distributing cryptocurrency. Nevertheless, blockchain comprises many other significant scopes that will amaze you. Scroll down to know how this digital leger can change the entire concept of using the internet.
1) Decentralized Cloud Storage
Distributed cloud space is the future of data storage because it ensures the utmost safety. Rather than a central network, it relies upon a peer-to-peer network. The currently running cloud storage services are good to an extent, but cannot ensure the safety. A breach in data storage has become the most common issue, and nobody takes liability after the data is leaked. The centralized cloud storage service providers are recently alleged to leak an enormous amount of user data. The blockchain is a reliable solution to this problem.
There are some reliable decentralized cloud service platforms available to use such as filecoin, storj, and siacoin. Rather than central storage, the data is distributed among the unused hard drives interconnected as nodes. Anyone can rent out their extra HDD space of computer system to earn money with the help of blockchain. Data on multiple nodes means extra copies of original data will be stored on multiple computer systems. It can be utilized in case of error in a storage unit, or HDD is corrupt. The entire data is encrypted in blocks that are only accessible with the help of a private key.
2) Digital Marketing Transformation
The concept of digital marketing can change entirely with the help of blockchain technology because it ensures the security of user data. Generally, the corporate giants sell information of users to multiply their profit. The network of blockchain is secure enough to restrict them from tracking what an individual is searching. You can see countless advertisements while accessing a simple website based on the basis of your search on shopping websites. Most of them are irrelevant and abusive too that you never want on your screen.
Blockchain eliminates the middlemen like Google and Facebook who are currently taking the maximum advantage of data vulnerability. Blockchain directly communicates with an investor who wants to run a marketing campaigning through advertisements. When the intermediates go out of this chain, it directly beneficiates the investor by reducing the campaigning cost. Blockchain brings transparency in digital marketing services campaigning that allows the marketers to monitor whether the advertisement is reaching the right audiences or not.
3) Fair Voting
Fair voting has become one of the biggest issues in this vulnerable cyber world most of the recently introduced technologies have failed. The interference of Russian hackers to affect recent US presidential elections is one of the biggest examples. For maintaining trust in the voting process to elect a representative, it is essential to find an error-free technology.
The blockchain’s feature of irreversible blocks can prevent double spending as well as double voting too. If the vote of an individual is validated in the blockchain, it identifies the maximum validations to prevent bogus voters from interfering in fair results. Only legally allowed voter can cast his/her vote and that too more conveniently than traditional polling booths.
4) Smart Contracts Formation
A decentralized ledger like Blockchain can be used to manage the online contracts. These are also called self-executing contracts that don’t require any kind of third-party support. Legal contracts can be executed faster than the normal process, and it is also safe. Whether you want to apply for government service or business deals. Just drop a certain amount of cryptocurrency in the account and avail the service instantly.
Smart contracts are highly beneficial for those who want to spread global business. It saves money as well as a lot of time that spend traveling from one location to another to meet physically. A smart contract automatically validates and enforce by eliminating the mediator’s interference. Along with smart contracts, POC development services are also offered by companies like BlockchainAustralia in a similar way. Trust build up is one of the most significant issues in freelancing work because any party can deny from providing work or paying the committed amount. A blockchain is an excellent tool for them to ensure the security of work delivered and money transfer.
5) Social Media Privacy
Social media has become the most powerful tool for global interaction; however, its current structure is highly prone to a data breach. Also, the leading social media companies are selling personal data to marketing agencies which are in direct interference with the user’s personal life. There is not an effective measure to stop the fake news intrusion in current social media. The platforms running with blockchain technology have less power to collect user’s information.
Also, the information comes on these platforms after validating through blockchain. Therefore, the risk of fake news automatically reduces to a minimal level. Even the users can also earn money as cryptocurrency from such platforms. Currently, Steem.io, SocialX, Foresting, Choon and Steepshot are some of the great social media alternatives to visit for maintaining personal privacy. The blockchain powered social media platforms are now at an initial stage, but will undoubtedly occupy a significant share in future.
This is just the beginning of blockchain concept, but it comprises countless possibilities that will reveal in the nearer future. Currently, the primary focus of blockchain is on cryptocurrency management because of the freedom of spending anonymously and high returns on investment. It is an open source platform that gives equal opportunity to everyone and helps in eliminating monopoly of handful IT giants.