Blockchain - Beyond Bitcoin
- RTM
- May 27, 2018
- 2 min read
For those who know the term but do not really understand what it does - blockchain is essentially a ledger or a register of records. Plainly put, it is chain of blocks, blocks which hold certain information. Understandably, this information is just digital. To make things clearer, imagine you are buying a sack of Apples from a grocery store. Now blockchain allows you to know backhand information about these Apples - block 1 - the farm in which they grew, per year productivity of the farm, block 2 - supply chain information like when they were plucked, how much was the transfer time etc and so forth. This example was created just for better understanding but in the tech world, blockchain, till now is largely being used for Bitcoin (cryptocurrency) transactions.
Blockchain technology offers some district features like using two keys (passwords), anonymity to third parties and hence security of transactions, data once entered into block cannot be edited, limited information is shareable. The positives and negatives of each these features is under scrutiny by tech wizards world over, but unless widely accepted and seen practically, the speculation will continue for some time.
Now as we understood that blockchain is essentially a ledger with information, common sense says that its uses should be beyond currency transactions. For example, since the information is largely anonymous to the party that is not involved in the transaction, can enterprises consider putting extensive data for client on blockchain? This data till now is shared through systems like dropbox, manual transfers etc. So essentially, blockchain becomes enterprise cloud systems - secure, cheap and efficient?
Legal contracts and notarized information is another field in which blockchain can be used. Consider buying a piece of land or ongoing business in a geographic area which is unknown to you. How does one carry out due diligence for that land or business? Is it an authorized transaction, titles, previous mortgages, goodwill, bank loans etc. Blockchain if made accessible, can provide this information to you. Of course, this can be done only with consent of regulatory or authorized parties but it will be a game changer if and when introduced.
Taking a step further, since blockchain contains encrypted (coded) data, in future will it be able to analyze the data it holds and draw conclusions accordingly? Specially on consumer behavior? Still in initial stages with start-ups, I think this will be a huge boon for marketing and retail industry.
Finally, multiple startups are working at present to use blockchain to create decentralized market places, decentralized stock exchanges, identity verifications, decentralized social media, encrypted P2P communications, decentralized service delivery options etc. All this because of ease of using the system between two holders and its anonymity.
While all looks positive and we are patiently watching how blockchain will revolutionize the future of internet and all things data, but at present thought should also be given on how it will encourage anti-social/terrorism activities. Also, it can give a field day to hacker or scammer. With great power comes great responsibility, after all - Voltaire.
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