Blockchain was originally created as a decentralized leader in Bitcoin transactions taking place within the Bitcoin network. A decentralized or distributed database / laser basically means that the storage devices, where the blanks are located, are not linked to a common processor. Blockchain has a growing list of transactions through blocks. Each block is time stamped and then becomes part of the blockchain and is attached to the previous block
Before computers, people make many copies of their important documents and store them in impenetrable steel safe, chest of drawers or in bank vaults. As an additional security measure you will translate each of these documents into a secret language that only you understand. That way, even if someone manages to break into your bank vault and steal your belongings, they won’t be able to understand your cryptic messages and you still have plenty of backups stored elsewhere.
Blockchain puts this idea into steroids. Imagine that you and a million friends are able to copy all your files, encrypt them with special software, and save them to each other’s digital bank vaults (computers) all over the Internet. That way even if a hacker breaks into your computer, steals or destroys it, they can’t interpret your data and your friends network still has 999,999 backups of your files. In short it is a blockchain.
Special files scrambled with encryption software so that only certain people can read them, save them to a common computer, connect to the network, or connect to the Internet. Files are called – it records your data in a certain way. Computers are called nodes or blocks – personal computers that share their processing power, storage space, and bandwidth. And the network is called a chain – a series of connected blocks that allow computers to work together to share leaders from each other (hence the name, blockchain).
The social impact of blockchain technology is already beginning to be realized and this may just be an indication of an iceberg. Cryptocurrencies have already raised suspicions about financial services through the provision of digital wallets, ATM rollouts and loans and repayments. At a time when more than 2 billion people worldwide today are considering this issue without a bank account, such transfers can certainly be life-changing and simply positive.
Cryptocurrency exchanges will be easier for developing countries than the Fight Money and Credit Card process. In a way, this is similar to the transformation that has taken place with cellular phones in developing countries. It was easier to acquire a large number of cell phones than to provide a new infrastructure for landline phones. Decentralization away from government and control over people’s lives would probably be adopted by many and the social effects could be significant enough.
Identity snatching in the news in recent years should only be considered. The transfer of control of identification to the public must eliminate such incidents and allow people to disclose information with confidence. In addition to providing disadvantaged access to banking services, greater transparency can also increase the profile and effectiveness of donors working in developing countries under corrupt or strategic governments. The level of confidence in where the money goes and who pays the benefits will certainly increase the additional contribution and support for those in need in different parts of the world. Humorously, and without public opinion, Blockchain can create a financial system based on trust.
Blockchain technology has been put in place to take this one step further, removing the possibility of vote rigging and all other negatives related to the current process. Believe it or not, blockchain can actually solve some of these problems. Of course, with a new technology, new obstacles and problems will come but the cycle continues and those new problems will be solved with more sophisticated solutions.
The decentralized register provided all the data needed to accurately record the votes on an anonymous basis and verified the accuracy and whether there was any manipulation in the voting process. Intimidation is non-existent as voters are able to cast their ballots for the privacy of their homes.
It remains to be seen whether blockchain technology will become a part of everyday life. While we know today that inflated expectations have increased the likelihood of the central banks and their responsibilities ending, the end of the centralized financial system is probably a step too far for now. Time will tell how the blockchain will evolve, but one thing seems certain today. Resilience is no longer an option and needs to be changed.