What is the Blockchain and why you should learn all about it?
What is the Blockchain and why you should learn all about it?From banking and secure communications to healthcare and education, from buying a coffee to ride-sharing, blockchain will have a huge impact on our future. Of course, to understand how blockchain will change the world, you first need to have a grip on how it works.
Have you ever purchased a beverage or some product that is labeled as a fair trade product? How can you trust that information? What about when you agree to meet someone you found on a dating website? How do you know they’re really the 29 -year-old startup founder, eco-friendly, vegan and blonde surfer that they say they are? Society today is filled with skepticism and trust issues -- and with valid reason. To be sure your purchase is really helping a coffee bean farmer in Laos or that your date is actually who they say they are, you’d need a system with strong integrity where records are stored and facts are verified by many anonymous witnesses so that it is impossible to cheat it.
Blockchain: Simplified So what is the blockchain? First of all no one central person or company owns it. Rather, information is stored across a system of many personal computers so that there is no middleman. It’s decentralized and distributed so that no one person can take it down or corrupt it. However, anyone can use the system and help run it, as information is secured through cryptography.
It’s essentially an ever-growing list of transactions (listed in blocks) that are verified, permanently recorded, and chain-linked in chronological order. Any transaction is managed by a number of miners who are anonymous to one another, and they use massive computers to verify huge equations. When the equations comes to the same answer by a number of anonymous miners, then a transaction is verified and completed free and instantly, free from human bias and the usual traditional financial charges we have all grown so weary of. Blockchain will be a perfect “backstage” to many changing technologies and will impact the way we educate, manage, consume, govern and communicate in the future.
How Blockchain Will Change our lives. Banking and Payments:
Not only does blockchain allow anyone to exchange money faster, more efficiently, and more securely (i.e., bitcoin currency), the future will be free of the time waiting for money and the banks sitting on our hard earned earning interest from us. So much so, that the banks are furiously working on their own versions of blockchain. Personally I wonder where the money is held for the banks in blockchain technology as they make a vast majority of their profit on long term deposits.
All data is verified and encrypted in blockchain using advanced cryptography, making it resistant to unusual or non-authorized changes and hacks. Centralized servers can be very susceptible to data faults, corruption, and human error and hacking. Just look at the many system hackings we’ve seen in the past few years with Target, Verizon, Deloitte and Equifax. Using a blockchain decentralized, distributed system would allow data storage in the cloud which is more robust and protected against attacks. Not to mention protection of our personal data!
Internet of Things:
Today the Internet of Things (IoT) includes our phones, vehicles, homes and offices, doorbells and even refrigerators that are embedded with software, network connectivity, and sensors. However, because these devices operate from a central location that manages commands, unscrupulous people on the dark web can gain access to the car you’re driving or to your home. According to experts in Bitcoin and Ethereum Blockchain capabilities, a blockchain has the potential ability to address these critical security concerns because it decentralizes all of the information and data. This is increasingly more important as we rely on more and more hardware and software in our everyday lives.
Blockchain can enable rapid, safer, and more trusted automated communication. Automated or digital communication based on pre-built algorithms is already occurring at scale in some industries. Examples of this include emails, system alerts, and call notifications.
Experts believe that while a lot of communication is currently automated, this type of communication is generally non-critical and asynchronous. Blockchain can shift the playing field to allow authorized, bi-directional communications and transactions that occur more freely in an automated landscape and produce an immovable record of communication. This will greatly enhance the safety and reliability of our communications.
If corrupt politicians and long lines at governmental agencies for permits and taxes give you a headache, you’re not alone. With blockchain, we could reduce bureaucracy and increase security, efficiency and transparency. Welfare and unemployment benefits could also be more easily verified and distributed and votes could be counted and verified for legitimacy.
Crowdfunding and Donating to Charities:
Donating to an altruistic cause is never a bad idea. But what percentage of your donation is actually being given to those it’s meant for? Many scandals have surfaced recently of inappropriate payments to CEO’s of charities. Blockchain can help ensure that your money gets to the heart of where you need it to go.
Bitcoin-based charities are already creating trust through smart contracts and online reputation systems and allowing donors to see where their donations go through a secure and transparent ledger. The United Nations’ World Food Program is currently implementing blockchain technology to allow refugees to purchase food by using Iris scans instead of vouchers, cash or credit cards.
The medical world and its associated bureaucracy is well in need of bringing into the 21st Century. Why can't all of our medical history be stored in a central database? The centralization of such sensitive information makes it very vulnerable. With all of the private patient data that hospitals collect, a secure platform is vital. With the advent of blockchain, hospitals and other healthcare frameworks could create a centralized and safe database, store medical records and share them securely with authorized doctors and patients.
Rentals and Ride-sharing:
Uber and Airbnb may seem like decentralized networks, but the platform owners are in complete control of the network and unsurprisingly take a fee for their service. Blockchain can create decentralized peer-to-peer ride-sharing apps and can allow car owner/drivers to auto pay for things like parking, tolls and fuel costs.
While blockchain is still relatively new and needs time to evolve, the possibilities for innovation are endless. We will find more and more uses for blockchain while it is now finding its way into retail, energy management, online music, supply chain management, forecasting, consulting, real estate, insurance and much more. Let’s prepare ourselves for a future where distributed, autonomous solutions will have a colossal importance and role -- both in our personal lives and in business.
The synergy of mobile applications, with the ability to make fast and instant payments and purchases on the go for cryptocurrencies, commodities, and cash itself, and the blockchain go hand in hand… and Winstantpay is at the forefront of mobile payments online and by utilizing the latest technology have developed their system to make online payments fast and easy for everyone to use.
Get your wallet today. Find out more about WinstantPay here and how it blends traditional banking with Fintech.
WinstantPay is a global payment network providing merchants and individuals a reasonably priced global final payment in an instant, in any currency, anywhere, anytime, with integrated anti-money laundering (AML) compliance that reduces time, costs, risks associated with payments. Serving financial institutions of all sizes for the last 18 years with financial services, software development, and business support, WinstantPay is also a founding member of WorldKYC-AML. For more information on how WinstantPay can deliver cutting edge business, visit our website and follow us on Linkedin, Twitter, Facebook, Medium, and Github.