With the huge rise in popularity surrounding cryptocurrencies recently, you may have heard the word ‘blockchain’ once or twice. But what exactly is it?
Blockchain provides a decentralised database of transactions that everyone on the network can see. This network is essentially a chain of computers that must all approve an exchange before it can be verified and recorded. The technology will allow consumers and suppliers to connect directly, which removes the need for a third party.
In regards of how blockchain would work with Bitcoin, blockchain would store the details of every transaction made using Bitcoin. Therefore, the blockchain would stop the same Bitcoin being spent more than once.
Blockchain was first created by the creator of Bitcoin Satoshi Nakamoto and when this was released, people started to realise the potential of blockchain technology. The uses for blockchain are limitless as it can be used in any transaction that involves value, goods or services.
Blockchain technology will power the new Web 3.0, also known as ‘the new internet’. Which is basically how the next generation of applications, data, concepts and people are connected by the new technology. This means that a middleman to ensure privacy or security will no longer be needed.
So how will blockchain technology effect our future? It will most likely completely change the way we do our banking today. As big banks and financial institutions will unquestionably use the technology for traditional banking operations. Especially after how successfully it was applied to cryptocurrencies. This will saves banks a considerable amount, which will allow us to conduct faster transactions at lower costs.
It is also believed that national cryptocurrencies will start to appear. Russian President Vladimir Putin was the first who proposed to issue “Crypto Rouble” a national cryptocurrency. Although some countries like China still ban cryptocurrency exchanges, we should expect that governments will finally accept the blockchain-based currency in 2018 because of its potential advantages for public and potential services.
Another useful way it will effect our future is its integration with the Internet of Things (IoT). Blockchain can provide a secure and scalable framework for communication between IoT devices and is highly resistive against cyberattacks.
Blockchain in the future will revolutionise business processes in many if not all industries eventually. Nevertheless, in the near future, we can expect that governments will finally accept blockchain benefits and begin to use it for improving financial and public services. Blockchain will force businesses to completely reconsider their processes and by 2020 we will see more examples of successful implementation of blockchain technology.