In 2008 Satoshi Nakamoto created the blockchain system and its first application: the digital currency Bitcoin. We have already talked about what is Cryptocurrency and why was it created.
But what is Blockchain?
Blockchain and Bitcoin were invented together, but Bitcoin is only the first of many uses of blockchain technology. Imagine that Bitcoin is an email and Blockchain is the internet. It’s only one of many exciting ways to use groundbreaking new technology!
Blockchain technology is built to let you safely transfer digital information (like money) in a secure environment, without the need for any middlemen (like banks). Skipping the middlemen makes transfers faster and a lot cheaper.
But blockchain can do a LOT more than just send money.
Guts is a transparent ticketing ecosystem that uses blockchain technology to eliminate ticket fraud.
Blockchain also records all transactions ever made and it’s strong computer code ensures that it’s impossible to change these records. Once information is added to the blockchain, it’s there forever. And because of this, it’s possible for two people to transfer money without the worry of being scammed.
Once digital money (like Bitcoin) is sent, it’s publicly added to the receiver’s account. So if a scammer tries to spend their money twice, it’s easily discovered and prevented.
What industries will Blockchain will impact?
Buying and selling solar panel’s energy will be a lot more reliable. With blockchain, energy can be bought and sold by private individuals. And again, people would be fairly charged for how much energy they use.
Many countries still use paper ballots and old-fashioned ways to count votes, but with blockchain automatically verifying voters identities and making sure all votes are correctly counted, voting can become much more reliable.
Blockchain automatically ensures that the ownership of products like money, cars, and real estate is safely recorded. You’ll be able to easily prove your rights. This also protects us against theft and fraud.
Internet of Things (IoT)
Blockchain could be the language that devices use to communicate with each other. For example, your smartphone could request and pay a smart car directly with a trusted connection between IoT devices. Removing the middleman can make a more convenient and connected world possible.
When you request an Uber, the request goes to the central and then to the Uber driver. At the end of the trip, your payment goes to Uber that takes a commission and then pays the driver. With blockchain technology, the payment you go directly from you to your driver’s account.
Currently, people have to pretty much trust charities to do what they say and there are a lot of charities that are owned by corrupt people.
With blockchain, all donations can be tracked all the way from the source to the receiver and it’s possible to make sure the money is put to good use.