What is Blockchain?

Today, we are living in an Internet world. The internet has digitized our wallets and our money. The currencies have changed, the economy is changing. The most profitable investment assets are no longer banknotes, lands, houses or cars. Now, we have a whole different system with cryptocurrencies and blockchain. We are explaining the concepts of cryptocurrency and blockchain, in which bitcoin and its derivatives belongs.

Blockchains are digital notebooks:

Each unit of this book is a “block”, and these blocks are sorted without breaking the order in which they are created. So, basically, they are like pages of a book. Just like it is not possible to change the order of the pages of a book, it is not possible to change the location of the block-chain rings linked to common root.

Consider Blockchains as a playlist:

It is not possible to change the order of the songs in the playlist, but it is possible to add new songs. Each song means adding another ring to the chain. So, with the new incoming chain ring, the blockchain contains all the songs you have been added up.

If someone you know wants to add another song to the list, he/she can add the next ring (the block) in the list. If this block approved by the all participants in the list, the song will be added to your playlist. If they want to delete a song from the playlist, there will be a note about the deletion of that song in the new version of the blockchain.

More Secure than standard money transfer systems:

Consider two people or companies that do not trust each other, yet there is a commercial relation between them. The amount of money could be very big or very small. Today, systems like online banking can not be trustworthy as much as encrypted systems like bitcoin on the grounds that private accounts can be hacked very easily or can be accessible from someone else. However, in the systems like blockchain, especially the security technology and a system based on anonymous accounts disables the data robbery and security problem.As a result, making money transfer in the digital environment raises the issue of trust and this can only be provided by encrypted systems.

However, due to the high technology features and encryption methods, it is not possible to get the encryption off blockchains. To be able to do that, while the quantum computer systems become widespread, security measures must stay the same and never be improved. This is an off-chance for a market with such a high trade volume.

What are the benefits of Blockchain?

Blockchain technology provides us accessibility from anywhere, to create decentralized management that can manage your information and data transfers quickly and securely.

Without any time and space constraints, anyone can access any processing done in the blockchain. All your transactions can be transferred in a few minutes and will be completed in a few minutes with only your access.

It avoids the transaction and time costs. You have the whole control and there absolutely no third party holding your data or restricting your access.

Blockchain will change not only the banking but the entire economic system!

According to Kathryn Harrison, head of the IBM MENA Blockchain, the blockchain technology which has appealed as a virtual currency as Bitcoin and has awaken financial institutions’ interest, will radically change the entire economy and not just banking system.

Each company keeps their own records. And every company keeps the record of what they do with which partner. But those records are often unique to each company which results as so much time spending on reconciliation. And there is also corruption side of the story. Someone may have entered the records and made irregularities. Or it may be because of a technical error that the records are not keeping up with each other. Blockchain technology allows companies to keep a common record while eliminating all these extra costs, corruption and technical errors.

BLOCKCHAIN WILL OPEN NEW BUSINESS OPPORTUNITIES BY REMOVING BORDERS.

- Is the blockchain just simplifying the processes?

The coolest part of this is creating new job opportunities. Because the business world we have today has some boundaries. And all processes, sectors, and even business models can change when you can take away some of these boundaries with technologies like blockchain.

How does the business world look at this issue now? Are they getting ready for blockchain?

We see that companies interested in blockchain are spreading across a wide range of sectors. The finance sector was the first sector interested in blockchain because it was a technology created for the virtual currency; bitcoin. The blockchain was launched for bitcoin, an area that was created after the global financial crisis and

was not fully controlled. However, noticing the decay caused by this lack of inspection, the financial institutions began to wake up one by one and they started to ask.

"What is that? How will it affect our business and our potential? "

FROM TOURISM TO MEDIA, HEALTH TO GOVERNMENT, EVERYONE WILL USE!

-Which sectors are preparing to enter the blockchain world?

There are many new opportunities for technology to support the transfer of information and assets exchange between parties in the business world. Today, IBM consulting with governments and companies not only from finance sector but from tourism, media, health and service sectors, about blockchain technology. Even in a very simple process like getting a car license, parties can take advantages of the blockchain’s transparency, certainty, and reconciliation.

Innumerable sectors may see a revolution with smart contracts!

Which means that firms were able to observe this awakening on financial area and there was one idea which was sparking in their mind that integrating the system into their progresses. Sounds magnificent but on the aspect of taking the right action they had contemplated as ‘how it will be?’. Nowadays, blockchain is being used in bitcoin area as actively. Other areas are still improving their impairment points. First, they need a record technology afterwards smart contracts which will be used in business line. Those contracts can be classified like our daily agreements such as a contract for renting a home or any indenture of purchasing a car. If all these contracts were switched with smart contracts, much more sectors could have a revolution with blockchain.

The most sensitive subject of blockchain will be secrecy.

Another point is that even though all records shared by participants in blockchain, how can we make interpretation about the privacy issue?

Imagine yourself, you have a significant business. Would you prefer to be known about how much you pay for your suppliers? Privacy appears even in this case because you would not be willing to reveal some of your tiny secrets. However, we always look for inspectors or audit firms to have a precise access into all progress of the businesses. These are especially the ones which we purchase

something every single day! The main reason of this precious desire is about quality assurance. We are willing to be aware of the beer which will be hit on a Friday night. Is it really imported beer of France or Belgium? This can be made interpretation on convenience goods even. We must purchase with inner peace that the cheese and eggs on my breakfast plate are not under the counter. To sum up with, we are both willing to have a transparency and an inner desire to have an authority to decide about what to share with whom. That situation is quite unlike from current blockchain system for that matter we are considering its development. There is still a little bit time to evolve.