For centuries men had to rely on third-party institutes like government agencies, financial institutes, large corporations to manage the integrity and trust of transactions in the real world. This need for trust and middlemen had also allowed technology giants like Google, Facebook, and Amazon to turn economies of scale and network effects into de facto monopolies. These giants are, in effect, centralized ledger keepers, building vast records of “transactions” in what is, arguably, the most important "currency" in the world i.e. our digital data. By controlling those records, they control us.
Technology is at the heart of unprecedented change, there is near-constant innovation, growth, and disruption. Blockchain is a new emerging technology where technology is meeting trust by eliminating all middlemen. A decade since its launch Blockchain still continues to be a hot topic across the globe. And big corporate are placing huge bets on this technology.
Blockchain technology provide a platform that allow lenders and borrowers to transact directly in a secure environment. The terms are specified in the blockchain and will be executed automatically without bias. The costs saved from eliminating intermediaries are passed to participants of transaction.
Blockchain holds the power to transform not only the monetary system but the whole way we operate in society today. Just like not many believe in internet thirty years ago, today 40% of world is connected to world wide web. The success of internet was it was open for everyone, blockchain is internet of value that gives us the ability to not only transmit the information but value in the blink of eye to anyone anywhere in the world.
How Blockchain Works?
To understand how blockchain is changing our perception towards technology in terms of trust, we have to look at details of how Blockchain works. We are demonstrating Bitcoin Blockchain, as working of all blockchain are very similar to it.
Blockchain is an electronic ledger that is distributed across thousands of computers that are geographically separated. This distributed network of computers holding electronic ledger form the Bitcoin blockchain.
Every electronic Ledger in Bitcoin blockchain holds a set of transactions in the form of blocks. Blocks are files holding data of Bitcoin network permanently. A block records some or all of the most recent Bitcoin transactions that have not yet entered any prior blocks. Thus Block is just like page of a ledger. Once a block is written it can't be altered. Blockchain protocol ensures that there is uniform ledger on all computers and if somebody tries to introduce a fake transaction into the ledger, he can only do so by adding it to all copies of ledger (which is not possible) else that transaction is spotted and will be removed.
Three Levels of Blockchain
Three levels of blockchain can help understanding why Blockchain is a synonym of digital trust
Better ID Management.
From identity thefts, fraudulent transactions, to online marketplaces not providing enough security to both parties, both consumers and sellers are becoming more hesitant to part with their money through online transactions. Thanks to blockchain technology no personal information is transferred with transactions. Sender and receiver both remain anonymous in the process of sending and receiving. It's a great way to do business in areas where crime rate is high.
All Cryptocurrency transactions are strongly encrypted with private keys. As long as you keep your private key safe nothing can happen to your cryptocurrency tokens.
Experts believe that Blockchain technology is coming and is coming faster then we think. We have to think fast about how do we take advantage of Blockchain technology to build trusted economies. Tomorrow is always waiting to be explored, we have to accept Blockchain technology to imagine, deliver and run the future.