The blockchain is technology that Bitcoin, Ethereum, and other altcoins are built upon. Not all blockchains are alike but the basic technology behind them is similar. A blockchain is like an advanced accounting system, or what is typically called a ledger.
The Bitcoin blockchain is built upon a ledger that keeps track of monetary transactions whereas the blockchain Ethereum is built upon is based on what are referred to as "Smart Contracts".
A smart contract is a set of rules pertaining to a specific task based upon input from an outside digital source. For example, hydro poles may have sensors for when they are overheating, leaning or completely out of commission. The data from these sensors create a smart contract for communication with servicemen to alert them where attention is needed to keep operations running smoothly. Smart contracts can also be established with other sensors to reroute the direction of power to an alternate source until the issues are dealt with.
Objects with sensors that communicate data are also known as the technology coined "The Internet of Things" or IoT. IoT and the Ethereum blockchain work hand in hand to create the next phase in what people are referring to as Artificial Intelligence (AI). Monetizing AI technology works with Bitcoin blockchain to create value from smart contracts.
Step forward to the future days of transportation. Via human input, we will program a destination into our vehicle. Our IoT vehicle will map out the most efficient route. If an obstacle happens along the way such as traffic congestion our vehicle will use AI to reroute. When we arrive at our destination, IoT will find the most convenient available parking. This parking could be a private parking space, or even a driveway not being currently used by its owner. That owner may choose to lease out this space on the blockchain while it is not in use. Our smart vehicle can lease this space using a set of permissions or a "smart contract" we have pre-established with parking criteria, for example how much we are willing to spend for the most convenient spot closest to our destination, and automatically send a blockchain transaction based upon the Bitcoin monetary blockchain model for lease of this space which can be calculated on a per minute basis. You will no longer be charged hourly rates for a spot you only need for 5 minutes as blockchain technology enables calculations down to microseconds.
Blockchain ledgers are secure, efficient and transparent. Transactions are set up automatically based upon a set of smart contracts and pre-established criteria for monetization. Furthermore, the data is not stored in one location but it is decentralized by hashing the data and using algorithms to build blocks in the blockchain. The blockchain data is not stored in one location but nodes in blockchain wallets of all it's users making it very secure. Every block is linked to the data of the block created before it creating a chain. This chain means once a transaction is entered into a block it is forever as it would be too difficult to undo all the data entered after it.
The above are just a couple of examples of how we will be positively impacted by these growing technologies of the future.
References:
Tapscott, Don, and Alex Tapscott. 2016. Blockchain revolution: how the technology behind bitcoin is changing money, business, and the world.
Szabo, Nick. Feb. 2017 Money, blockchains, and social scalability. http://unenumerated.blogspot.ca/2017/02/money-blockchains-and-social-scalability.html
