6 Reasons To Love Blockchain Technology

Why Use a Blockchain?

by DailyCryptoInfo 331 Views

6 Reasons To Love Blockchain Technology

Why Use a Blockchain?

by DailyCryptoInfo 331 Views

6 - Immutable (write only) history

The blockchain is called a chain because it is not one gigantic database. It is more like several databases of blocks, sequenced in time, where each block is hashed. In bitcoin, this matters a lot because it uses proof-of-work. The proof-of-work is the arbitrary rule that everyone agrees is a designator of "the truth". And by chaining the proofs-of-work, it becomes exponentially more difficult to modify old records because modification of an old record would mean re-generating all the proofs-of-work in the blocks that came after it to match the blockchain pre-modificaiton. So in other words, if a value is written to the bitcoin blockchain, then it's not changing. Ever. This is exciting because it's the first immutable public record. People can put marriage proposals, contracts, domain name ownership records and other things on the bitcoin blockchain knowing that they will not be modified. There will always be a public record that on some date, some words were said or some artwork existed. You can still lie on the blockchain, but you cannot erase or modify anything once it's in.

Digital signatures would achieve the same thing, but digital signatures require a private key. There is no private key with a public database. So again, people are excited because enough people have agreed to put a lot of electricity into this proof-of-work to the point where it acts as a public safeguard of a write-only database.

5 - Smart contracts


The idea is: "if we can put marriage proposals and legal contracts that no one can modify on the blockchain, why don't we put computer code on it too? The necessity of this idea is debatable but nonetheless it is currently taking form as Ethereum, Counterparty, and Codius. Someone actually put a trojan signature in the bitcoin blockchain too. It created a lot of false positives in many anti-virus clients classifying the bitcoin blockchain as a trojan.

One example is crowdfunding. Crowdfunding is a very simple program. If(money raised > goal){transfer all money to fundraiser;} else { return money;}. Kickstarter and several other website on the Internet charge 5% to run this program. The idea is that you can replace Kickstarter with computer code on the blockchain and eliminate the 5% fee. In fact--Mike Hearn already did this with his program "Lighthouse". It runs on the bitcoin blockchain. Of course in reality, Kickstarter does more than run that program--they also host a website that does not crash, filter for crappy/scam campaigns and help with email collection.

4 - Open source and freely available

Probably one of the biggest strengths of Bitcoin was the fact that the original creators and inventors of the system gave it away, and made it available for free for anyone to use as an Open Source system. I believe this is one of the biggest factors that allowed early adopters who were not ideologically driven to try out Bitcoin and get involved in the ecosystem.
This provided a low barrier of entry and great incentive for entrepreneurs, and developers to explore ways of utilising / exploiting this new and powerful tool.

3 - A revolutionary technology that will disrupt existing businesses

Blockchain technology has matured, and more companies, tech entrepreneurs and developers have built on top of the original bitcoin blockchain, the one thing people are realising is that the technology is fundamentally an enabler of change from the ground up.
Many people see parallels between Blockchain technology and the early internet back in the 1990’s. In particular, people in the banks and large financial institutions still remember how the internet disrupted their business models, and are investing or testing blockchain technology, so they aren’t left behind, reacting to this new, powerful and disruptive new technology.

2 - Blockchain is revolutionizing the business world

Rights to intellectual property:

Previously, content creators were obligated towards corporations for packaging and distributing their creations. And the content creator even had to pay a significant amount to these corporations which acted as the middleman. Along with a loss of revenue, they also won’t have much say how their creative works are priced, shared, or advertised. With the introduction of Blockchain, several start-ups and registries have emerged on the scene which favours the creator. They provide a platform for the artist to distribute their works and get compensated for full value.

The ultimate registry for the Internet of Things (IoT):

IoT is the link between Internet and communication devices implanted in everyday objects which allows them to send and receive data. Simply put, it’s the world of sensors, moving objects like vehicles and or any device with embedded electronics. These devices can communicate with the outside world over an IP protocol.

Blockchain and IoT is a perfect combination because Blockchain enables and enhances several different application scenarios and use-cases for IoT. The entire lifecycle of IoT devices and applications can be simplified with Blockchain. This will prove to be the stimulus which will get business processes to act on these events.

Blockchain-based distributed ledger provides IoT with trust, record of ownership, transparency, and the overall (decentralized) communication backbone it needs. Another important aspect where IoT needs help is security standards. And Blockchain with its high end cryptography actually helps with IoT security. It can also be used as a go-to registry for ownership and maintaining data generated through IoT. This will prove to be the catalyst which facilitates growth of IoT across homes and enterprises.

Maintaining smart contracts:

Blockchain enabled smart contracts are disrupting the existing business practices. These smart contracts execute the terms and conditions between engaging parties automatically. This makes it safe and easy for these mutually unknown parties to establish contracts with each other. Blockchain enabled smart contracts take this a step further by preserving a proper system of financial transaction and automatically implementing multiparty agreements. They are also beneficial to the business processes because they are quicker, less prone to errors, decentralized and reduces costs as well.

Opening up manufacturing:

Today, creators still use centralized platforms to sell their wares and as a result protecting their Intellectual property of their creations becomes troublesome. This is where Blockchain technology can help. It can open up markets for manufacturers of all sizes and all types, while protecting their intellectual property. The creators can store the data, rights and other metadata about any substance on the blockchain. So it allows for protecting intellectual property while still opening up the limits of corporate manufacturing. Blockchain-based markets will ensure that buyers and sellers can contract in an open market with more ease.

Provides clarity to the global supply chain industry:

The global supply chains at present have many points of failure. Brands which rely on them for prompt and quality shipments face a lot of risks. With a market cap of $40 Trillion, global supply chain forms the backbone of service economy and manufacturing industry. But from a business-process viewpoint, it can only be described as a spectacularly inefficient mess! The addition of Blockchain will go a long way in straightening this mess by increasing transparency. This in turn will help in reducing costs, risks and drive agility and adaptability.

Increasing collaboration by eliminating intermediaries:

Intermediaries like large social network providers, are still necessary for establishing a level of trust and co-ordinate between people and organizations. This offers a perfect opportunity for blockchain-based systems. Blockchain based social networks will have better functionality which can be customized to protect data and thus empowering consumers. This will eliminate the need for such intermediaries. So the existing vendors will have to adopt Blockchain or face disruption.

1 - Blockchain stores value


Blockchain technology is exciting because it gives the best solution to the biggest problem humanity has ever faced since the agricultural revolution: How to store value?
Ever since men and women were able to produce more value than what was needed to go through the day, their constant worry was to safely store their capital. Protecting the fruits of human labour required the cooperation of growing numbers of individuals leading to ever larger and complex societies.
Until today, capital has always been at risk. Its safety relied on others to respect shared norms and values. The blockchain technology allows us to store value without the need for intermediaries, third parties or institutions. This will have enormous consequences on the way societies founction and on what individuals will be able to do. It will impact not only the financial system but all institutions.

Well, you can basically do anything and everything with Blockchain. Blockchain is basically a digital ledger to store datas in form which is resistant to all kind of physical attacks.

Below here are some of the real life applications of Blockchain.

  • Health service : to store details and diagnosis of patient in a hospital
  • Supply chain : to enrich the supply chain, blockchain can be used
  • Insurance : peer to peer insurance platform where claims can be made online and instant approval is possible
  • Logistics : a platform to track and monitor
  • Land registration : to register land & other assets on blockchain which will be more transparent and tamper resistant
  • Vehicle registration : to register vehicles on blockchain with real time assessment and tracking
  • Domain name : domain name listing can be also done on blockchain
  • Birth/Death certificate : Birth or death certificates can be issued on Blockchain
  • Certification : whether it is school or college or any online institution, they can issue certificates on blockchain to avoid fraudulent.
  • Video/audios : using blockchain for video streaming where the creator of those have full control over there creation, payment can be done through digital coins/tokens
  • Patent : patents can be also included in Blockchain which helps in solving the problem created by authenticity
  • Applications : aplication registry through blockchain
  • Banking : yes ofcourse, many banks have adpoted Blockchain framework.
  • Digital currency : any one can issue there own cryptocurrency on blockchain
  • Energy grids : many companies are working on blockchain based energy grids.

Do you know what a Blockchain do? , Check out our Article here. Blockchain use cases can be an interesting subject you could check too here.