It seems like blockchain is popping up all over. Only a few years ago, blockchain was relegated to cryptocurrencies alone. Now, blockchain technology is being used for every kind of application you can imagine from online gaming to supply chain management.
What makes blockchain so attractive as a new technology?
Imagine, for a moment, a world where we can instantly transact. We can send money to each other instantly without a bank. A world like this one, you might suspect, would be riddled with fraud. What if it could be more secure? More transparent?
That is the promise of blockchain. Ideally, it’s exactly how everyday cryptocurrencies work. This peer-to-peer, decentralized network without the need of trusted third parties or intermediaries isn’t the world of tomorrow. It’s essentially how blockchain networks work.
A peer-to-peer revolution
Distributed and decentralized are the principle terms of blockchain and demonstrate its commitment to creating a truly peer-to-peer network of users who are not monitored or tracked at each step of their lives. This central theme is key to understanding why it has taken off in popularity and how people believe it will change the world. As most of us are now digital natives, the idea of going online without being monitored seems odd.
In fact, much of this monitoring is to make the user experience more fluid and less irritating when they go online. Like all wonderful things, there is a tremendous downside we simply do not acknowledge. The cost of doing business, as it were, is somewhat higher than many anticipated when they were first becoming familiar with the internet.
Privacy and control
The widespread collection of data and its uses for both private and military corporations has made many developers and users uncomfortable. They see this as inherently at odds with the standing purpose of the internet itself. This data collection and its connected financial schemes are part of the reason for the blockchain’s creation and why the number of blockchain developers continues to grow.
It proposes an alternative file sharing system that is not monitored and collated for financial gain but rather stays private between the parties. Many developers see this a boon and a true alternative to doing more structurally sound work in a more private way.
Others find cause for concern where they believe that blockchain is an overstated technology and that it will invariably lead to greater control in the hands of even fewer people. However, no matter the argument, it is undoubtedly a peer-to-peer system unlike anything we have seen before and its potential is limitless.
Immutable, transparent and secure
Additionally, its unique record-keeping system allows for transfers and transactions to remain unalterably accurate for as long as the system exists. In other words, once the code blocks are set they cannot be changed. This is a unique but valuable strategy when attempting to create cryptocurrencies or static ledgers.
It also speaks to another foundational element of the blockchain which is a truly accurate and transparent system that allows for an honest exchange of information and data. Bitcoin itself exemplifies this very message by maintaining a solid, static ledger that is incapable of lettering fraud.
This philosophy is part of what has drawn so many to Bitcoin and blockchain technology in general. Other cryptos and apps that utilize the technology are finding new ways to adapt it to their goals while staying true to their users.
Conclusion
Bitcoin was only the beginning. Satoshi Nakamoto’s seminal whitepaper Bitcoin: A Peer-to-Peer Electronic Cash System spurned the cryptocurrency revolution. For money or memes, fintech-minded developers have been propagating peer-to-peer cash for over a decade now.
Blockchain developers continue to push the boundaries of what’s possible with the technology. Enterprises are starting to see the value beyond just coins and are beginning to develop novel applications of blockchain technology. A decentralized triple-entry ledger is truly a powerful tool that we are only just now beginning to fully understand.
