People have been pondering for years how Blockchain technology will revolutionize the world. Initially, this term was used with a negative connotation in reference to the dark web wherein people could sell anything they wanted anonymously and without the possibility of being traced explains Peter DeCaprio. In 2014, Satoshi Nakamoto published a white paper about Bitcoin that is now regarded as the beginning of blockchain technology.
Nowadays, blockchain is one of those technologies that people either love or hate. People who support it claim that “the internet will be under its dominion within 5 years” while opponents argue that there’s nothing virtual currencies can do better than fiat money says Peter DeCaprio. But what does ‘revolution’ really mean?
By definition, social sciences use this word to describe an extended period of time during which several characteristics are present. Generally, this word implies the transformation of all aspects in a given society including politics, economics, culture, and law.
Of course, when discussing technology that could transform human life at its core one needs to be extremely careful. This is why we’ll review 10 facts about Blockchain that you should consider before making up your mind.
1. Blockchain Technology Was Invented to Support Bitcoin and Other Cryptocurrencies:
Since blockchain technology was first discussed, people have been trying to find alternative uses for it. Since then, this kind of platform has become extremely popular as a store of value similar to gold or silver. Even though there are now more than 1,000 cryptocurrencies in circulation as of September 2017 (and growing), the most famous one is still the father of all virtual currencies: Bitcoin.
2. Many People Think that Blockchain Will Take Over the World:
The number of people who think that blockchain will change our lives forever is constantly increasing and not solely inside online communities. According to Gartner’s forecasts, at least banks will be using blockchain platforms by 2020. Additionally, this research company expects that at least some governments will achieve the same during the next few years says Peter DeCaprio.
3. Blockchain Technology Is Directly Related to Bitcoin:
Bitcoin is certainly not the only virtual currency in circulation but it is still one of the most popular ones. Since its introduction in 2008, blockchain has been closely related to cryptocurrencies including Bitcoin and Ethereum explains Peter DeCaprio. This is due to how both types of concepts rely on tokens for security purposes. With every operation being recorded on the blockchain ledger.
4. The Main Advantages of Using Blockchain Are Security and Eliminating Third Parties:
Blockchain’s main advantage is that it allows people. To transfer virtual currencies from one user to another without involving third parties. In other words, this decentralized platform allows people to make transactions without a middleman of any kind.
5. People think that Blockchain is a Secure Database:
When blockchain was first developed, its main purpose was to create a secure database for cryptocurrencies including Ethereum and Bitcoin. Eventually, many more individuals started using this technology in order to store their sensitive information. Such as birth certificates or marriage contracts without worrying about third-party interference.
6. There Are Many Other Types of Blockchains Besides Cryptocurrencies:
In the same way that you can use different types of databases for storing your private data. It’s also possible to do the same with blockchain. Even though cryptocurrencies are probably why you first heard about this revolutionary information technology. There are many others that can be in use for other purposes.
7. Blockchain Is Transparent But Completely Private:
Blockchain is extremely transparent since all operations performed on the network are open to the public. However, it’s also completely anonymous. Since using virtual currencies requires creating an alias (or pseudonym) in order to ensure security and privacy. This means that while your transactions can be seen by everyone on the network. No one will have access to your personal data without special permission.
8. In Order to Use Blockchain You’ll Need Cryptocurrency Miners:
In order to join the blockchain network and invest in cryptocurrency, you’ll need a cryptocurrency miner. These usually come in the form of a smart device or a PC. That’s in use to solve extremely complex mathematical problems.
9. People Using Blockchain Will Have Their Identities Protected:
While your transactions can be seen by everyone on the blockchain network, your identity will remain anonymous. In fact, using this information technology for storing personal data is probably one of its biggest advantages when compared to other compression methods.
10. The Main Disadvantages of Blockchain Are Time-Consuming and Not Very User-Friendly:
In order to join the blockchain network and start investing in cryptocurrencies like Bitcoin and Ethereum. You’ll need at least a PC with an appropriate cryptocurrency miner smart device. Furthermore, Peter DeCaprio says, since blockchain is a decentralized platform that allows its users to encrypt their personal data, the whole process is usually very slow and not very user-friendly.
Conclusion:
As you can see, even though it may look complicated at first sight. Blockchain has so many benefits when compared to traditional compression methods. That being said, there are still some obvious disadvantages. That prevents it from being in use for every single application out there. By knowing these facts about the most popular business applications of blockchain technology. You’re now ready to join this exciting future trend!