Blockchain Technology: Infrastructure for the Future
The present results from the imagination of the past while the future is the result of the imagination of the present. The men and women who implement great ideas are those who have used their imagination as a tool to see into the future and birth those ideas into the present. Those who rule the future are those who have seen the future in their imaginations and can build according to what they have seen.
Imagine a world with no intermediaries and all transactions can be done from person to person with little or no intermediaries at a very low cost with utmost security. A world where data can be stored and processed without the input of a middle man. The fuel for that world will be Blockchain technology. This will not just disrupt the way we do things but will aid in the development and evolution of mankind.
Currently, we are in a world where there’s a constant increase in the exchange of data and information however, the current infrastructure built cannot facilitate the transition into the future. Hence, there is a need for the development and implementation of new technological infrastructure to aid us into the Future.
In this blog post, join me as we dive into the foundation and basics of Blockchain Technology.
What is Blockchain Technology?
Blockchain is a peer-to-peer system with no central authority managing data flow. Everything around us has a building block of data. All our transactions and contracts are all data stored in a central database. Blockchain disrupts this order by removing central control while maintaining data integrity and trust with the use of cryptography which is simply the process of protecting information via code.
In Blockchain technology, the computers that make up the network are in more than one location (distributed clusters) and these computers are called full nodes. Blockchain technology is connected in a decentralized system meaning there is no central institution like banks, middle-man or agencies.
Why Blockchain Technology?
Blockchain Technology is a solution to the problem of centralization. It presents us with a future where everyone has the authority to access the history of all transactions. In a Centralised network, authentication and authorisation go through a central authority. If there is a fault with the central authority the whole network goes down and nothing can be done until the fault is resolved at the central point while in a Decentralised network, authentication and authorisation go via all users in the network which provides redundancy and safety for all the transactions ongoing. Faults on a node in the network will not affect the network and exchange of data can still go on.
Blockchain Technology is also a solution to the problem of trust in the system in society. Blockchain Technology creates trust and integrity in digital data. For information written and stored on a blockchain database, it is nearly impossible to change or remove such data. This is the immutability characteristic of blockchain databases as data is generally uneditable. Information that needs to be changed or added is appended to a digital ledger that stores the history of all transactions.
Types of Blockchain
Public blockchain: This is an open network available to everyone to participate in. Anyone connected to the network can view, read and write on the public block but erasing cannot be done. An example of Public blockchain is Bitcoin which is used as a currency for the exchange of value.
Permissioned blockchain: This is a large and distributed system that controls roles that individuals can play within the network. The core for this blockchain code may or may not be open source.
Private blockchain: This a smaller network with fewer users. The membership is closely controlled and allowed to only authorized persons. The private blockchain is used for very closed and confidential transactions.
Characteristics of Blockchain
Applications of Blockchain Technolgy
The application of Blockchain technology is widespread as it is a system poised to disrupt current technologies and transform societies and it also presents a new technological structure of performing transactions and exchange of data. Some direct applications of Blockchain include:
- Finance – Decentralized Cryptocurrencies e.g Bitcoin, Etherum, Litecoin and Ripple.
- Internet-of-Things (IoT)
- Payment – Cross-Border Payments
- Asset Management – Trade Processing and Settlement
- Insurance – Claims Processing
- And so much more
The world is gradually migrating towards the use of blockchain technology to solve problems. The solution to the problems of the future will be solved upon the infrastructure of blockchain technology.
Our future is what we imagine now.
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