Blockchain: The Future of Technology?
As the name suggests the technology revolves around a chain of blocks where digital information forms the blocks and its storage on public databases forms the chain.
Section 1: The Blockchain Technology
The technology consists of three fundamental components: a public distributed ledger, a synchronization protocol and a software development kit.
A public distributed ledger makes the network accessible and independent of any single entity’s control or influence. Each node is the owner of the data that is stored on the blockchain, such as documents, vouchers or digital currencies. The other two are the synchronization protocol and the software development kit.
A synchronized protocol was to help in communication between the participants within the network. The software development kit provides support for programmers to build applications and run them inside the decentralized network.
How Blockchain Technology Works
Whenever a transaction is done, it is added to the chain and then validated by two or more nodes on the network. The transaction itself is made by anyone who wishes to do so using the digital system or a messaging application on the blockchain
The network is organized and updated automatically.
It is impossible to hack a blockchain as there is no central controller of the technology. There is a strong chance that by owning the private key that provides access to the public-facing data on a blockchain, you could control the entire network.
The use of a digital currency like Bitcoin has helped make blockchain technology popular. Digital currency is a means of transmitting value and it helps to guarantee the security of the information on the blockchain.
What is a blockchain?
The blockchain is a shared digital ledger or database that enables secure, fast and cheap transactions between two parties. It’s open-source and transparent so you can audit and verify the integrity of data without the need for a central authority.
For more information on the technology check out our comprehensive guide here.
Bitcoin: A Blockchain
Bitcoin is a digital currency using blockchain technology and the first and still the largest cryptocurrency.
What is Bitcoin?
A cryptocurrency, bitcoin is basically a distributed ledger and is only accepted by a few major online retailers. But this is beginning to change as more and more retailers accept bitcoin for payment.
Problems with the current technology
Firstly, it is not an easy task to define what is blockchain and how it is similar to the traditional database. Also, the concept of blockchain is difficult to grasp for people. These days, a number of articles are being written about blockchain and most of them have been full of confusing words.
Secondly, a lot of people make some absurd claims about blockchain and how it will change the world.
Since most people do not understand the technology well, experts in the field believe that a better understanding of the concept will reduce the confusion among the general public and also bring down the price of investment in such companies.
Also, blockchain is not a secret and the public knows about it and is also aware of the basic steps of its creation.
How to fix the current technology
So, what do we need to fix the current problem with the current solutions and the blockchain in particular?
Easy! Stop Wasting Money in Valuable Times.
Ouch! If you think that you have wasted valuable time in the past it is because you have used the current technology which should have been possible but could not. As it seems like the problem is not fixed yet. That makes it even harder.
Those days we didn't have the technology, right? So, let's take a look at what we should change in the past technology.
First, the databases should contain user-friendly solutions that you could actually read and answer your questions. The solution that you can find today doesn't have it yet.
This should be the easiest part but that is still not the case.
The Future of Technology with Blockchain
By allowing data to be exchanged with greater integrity and transparency, blockchain holds the potential to be the future of digital technology and the economy. What’s really appealing about blockchain technology is that it has the potential to bring together all the undercurrents in the internet space, such as government, finance, the stock market, and more.
You can read more about blockchain technology here.
Blockchain and the Future of Marketing
A few organizations have made strides in building blockchain technology for marketing. DataXu has a real-time blockchain marketing platform.
Check out the interview below where I talked with DataXu CEO Daniel Feldstein.
Bitcoin itself, contrary to its initial intention as a currency, has become more of a bearer asset and a store of value since it can be used to invest in Bitcoin-related equities and funds or fund Bitcoin ventures. Further, the value of Bitcoin may fluctuate rapidly. But the underlying technology is not going to go away anytime soon, and therefore it could play an important role in solving other related problems including transferring and storing value without a central party, creating a distributed database, and allowing for more efficient, cheaper and verifiable record-keeping. If the current trends continue and Bitcoin succeeds as a currency, it could become more of a store of value, which is good news for its investors.