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By now, you may have heard of cryptocurrency and Bitcoin. Recently, the term “blockchain” has caused a huge sensation in the field of technology. There is a lot of hype surrounding blockchain technology, do you know why? This is because more and more people are finally beginning to understand the meaning of this technology.
Maybe it’s because it’s easy to portray advanced use cases. However, blockchain technology has also been carefully studied. In fact, millions of dollars have been spent on researching this technology in the past few years. Not only that, but many tests have been conducted to see if blockchain technology is appropriate in certain situations.
Although sometimes blockchain technology may seem to be an out-of-reach proposition, leaders and senior managers all over the world are committed to its cause. As Don Tapscott said: “The first-generation digital revolution brought us the Internet of information. The second-generation products supported by blockchain technology brought us the Internet of value: a A new platform that reshapes the business world and changes the old order of mankind.”
Let’s dive into the basics and discuss why blockchain technology should be used:
What exactly is a blockchain? Well, it can be a little complicated sometimes. It is often beyond the reach of most people, but if you can retain the basic knowledge of the technology, you will be one of the people who is qualified to take advantage of the upcoming blockchain revolution before others catch up.
For all the conspiracies and mysteries surrounding it, the blockchain is essentially a way of keeping records. Blockchain technology provides new tools for authorization and identity verification in the digital world, thereby avoiding the need for centralized administrators. Therefore, it allows the creation of new digital relationships.
Blockchain technology formalizes and ensures new digital relationships, which means that the blockchain revolution will create an Internet layer for transactions and value interaction (sometimes called the “Internet of Value” instead of the “Internet of Value”) Backbone. Information”, which requires the use of a client server, account and master replica database.)
However, when building a digital backbone network for the new Internet transaction layer, private keys and encrypted currencies are not the right choice.
Most groups have developed flowcharts to help individuals or entities make decisions between the blockchain or the master copy and the client-server database. The following is a summary of some of the many work done in the past:
Can the data be controlled by a central authority? If so, should it?
There are many reasons why third parties should be responsible for certain authorizations and certifications. In fact, sometimes third-party control is completely appropriate and necessary. If you are looking for data confidentiality, there are multiple ways to protect your data without even connecting it to the network.
However, if the previously existing IT infrastructure with login and account functions is insufficient to ensure the security of digital identities, the problem is unlikely to be solved by blockchain technology.
As Bitcoin’s creator Satoshi Nakamoto wrote in his (or her) seminal book “Bitcoin: Peer-to-Peer Electronic Cash System”: “Businessmen must be alert to their customers and ask them for more Information, this is more than they should have. Needed. A certain percentage of fraud is inevitable.”
For those who don’t know, private key cryptography can activate push transactions that do not require centralized systems and delicate accounts for creating digital relationships. For example, if this database requires millions of dollars to protect lightweight financial transactions, then blockchain is likely to solve the problem.
What are the most important considerations? Is it the speed of the transaction?
Many people find themselves asking a question: Does this database require high-performance millisecond transaction processing?
If this is necessary, then it is best to stick to a centralized system with a traditional model. As a database, the blockchain is often slow, and there is a cost to store data-this is mining every block in the chain. So far, because centralized data systems are based on a client-server model, they are much cheaper and faster.
Do you have dynamic data with detectable history?
Due to the complexity of the physical seal and/or appearance, paper may be difficult to counterfeit. Similar to carving things on stone, paper documents often have a certain degree of permanence.
However, if the data flow is constant, the paper may not be able to maintain the state of the recording system. In addition, manual data entry has a reasonable share of its artificial limits.
Therefore, if data and its history are critical to the digital relationships it helps to establish, blockchain can provide flexibility and allow parties to write new entries into a system of records held by multiple custodians.
Takeaway
So far, we don’t know the full limits and potential of blockchain, but we do know that the use cases that have passed inspections are focused on protecting and managing the digital relationships that are part of the system of record.
For the sake of simplicity, the future of blockchain is still in turmoil, but the next few years will be crucial because they will spend a lot of time experimenting and applying technology to all aspects of society. But most importantly, this technology will not be used anywhere anytime soon. When there is a decentralized and permanent record of assets, blockchain allows us not only to use the Internet to exchange information, but also to exchange value without the need for a third party (such as transactions with PayPal Holdings or credit card providers). Whether you see it or not, this will change the way our society operates.
Featured image: Twitter
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