In the latest Hollywood blockbuster Thor Ragnarok, Thor crashed on a strange planet and was sold for 10 million Units. After watching the movie I was fascinated with the idea of Thor getting sold but more fascinating was the price tag of Thor, 10 million units. What are these units a Hollywood fiction or future? I believe its reality.
What do you people understand when you read the word Blockchain, its simple enough to understand that it is a chain of blocks. Blocks can be made up of practically anything, what do you think when you are asked to explain our solar system? Our mighty sun in between and all planets revolving around it bonded by an invisible force known as the gravitational force. In the Same way blockchain is a chained structure bounded together with the force of algorithm. Here this algorithm is a line of computer codes designed to process the chunk of information mathematically which results in bending the space between scattered data and combining it into a block of information which results in forming chain which is known as blockchain.
At the beginning there was nothing except a single block of information known as the Genesis block. His father under the pseudonym of Satoshi Nakamoto made him and left alone in the wild universe.
Green- Genesis block
Black- Main chain block
Purple-Orphan block
Each Black block is a part of the main block chain that carries the chunk of information which is mathematically encrypted along with the cryptographic hash of the previous block thus connecting the two. The linked blocks form a chain which also proves the integrity of the previous block and can be traced back to first genesis block.
When you look at the clear night sky it’s full of bright clusters formed by millions of stars and galaxies. Similarly blockchain is decentralized, distributed and publically available across many computers so that no data can be altered, nobody is governing them it’s all independent governed by mathematical algorithm with one motive that is to validate the information.
It requires tremendous amount of energy to form a star, adding a block to a blockchain is equivalent to forming a star. It is nourished by supercomputing powers, solving lines of equations to validate the algorithm to solve the sole purpose of validating the information of the prior block.
Satoshi Nakamoto invented the first blockchain in 2008 for the use of digital currency known as bitcoin, which is secured by cryptography, also commonly known as cryptocurrency. This technology has been in shadows for years but now and many new projects are in development.
The whole blockchain system is decentralized. But how?
Blockchain introduced a term Known as Node, as I explained earlier it’s a cluster of computers so every computer that participates in the network is known as node. They work independently to solve algorithm and in return for their services a small share of cryptocurrency is rewarded to them. The person who is participating in the network also act as the administrator hence gets the copy of the blockchain as soon as he joins the network.
Such a structure allows blockchain to be independent of any individual control. Also no single point of failure can cause the structure to collapse.
Blockchain technology can be utilized in any field and is not only limited to cryptocurrencies but there is long list of projects that are in development.
Cloud storage
In today’s world we upload our data to some cloud server which is owned by an organization. Also they charge us a fee to maintain the services. Now think of a future where cloud storage can be distributed and decentralized, blockchain can make it possible.
Painless transactions – Get rid of banks
The concept of the bank exists in our world for ages but it’s going to change now. The whole idea of the banking system is to provide a rigid structure to economy, a central authority that governs and monitors billions of transactions that occur every day. But there is a major flaw in this system, it can be manipulated. Today’s banking system can be used to benefit very few. Blockchain technology can solve this problem, because of its decentralized and distributed nature control can be transferred from a central authority to millions of nodes that can run the system efficiently.
Smart Contracts and Cryptocurrencies are making this possible, now we can transfer assets independent of any banking system in a few seconds. Furthermore we don’t have to pay any outrageous fee to perform these transactions.
Blockchain technology is here and it’s here to stay. The future of this technology is still unraveling and many more projects and applications still have to show their face. With continuous demand of energy it’s becoming difficult for companies to manage their resources, blockchain is allowing them to distribute their processing power across the globe resulting in a more distributed and rigid structure. There’s still a lot more to come, the UNIVERSE IS EXPANDING, NOBODY KNOWS WHAT WE CAN ACHIEVE IN THE COMING YEARS.
