Continuing on my research, learning and education on BlockChain technology, I am writing this Part 1 of 5 series on the #1 keyword that is used to describe blockchain in general discussions. Refer my introduction blog : https://steemit.com/blockchain/@technoamit/blockchain-use-cases
#1 Reason for revolution BlockChain technology enables trust in a trust-less society
Technical and business community call blockchain a revolution. Elimination of all centralized authorities is the key to this revolution. In a connected world, we live in and the amount of information available to us on our finger tips, who needs a middleman to tell us (governance) what to do and how to do certain things. Simple things include, banking, buying stuff online, managing our health records, credit scores, writing blogs, sell stuff that we create (music, art, services etc...) the list goes on in every aspect of our daily lives.
Why wait for 2-3 "business days" to complete a transaction or an exchange around these simple things in life? Why do we need a 3rd. Party to tell us who to trust and who we should not? Don't we trust each other? Okay that was a little joke in there :) Well we really don't have to trust each other simply because we don't know everyone we transact with. So, we live in a "trust-less" society really. BlockChain enables Trust in a trust-less society and eliminates need to have a paid middleman.
#2 Reason for revolution: Decentralized Record Keeping
Once data is written to a BlockChain ledger, it gets written on multiple nodes across the internet that participate in making blockchain happen. To access this information or to change it, the data source and owner will be validated across nodes using very complex mathematical computations. This process is commonly referred as avoid of “double spend”. The process and people that enable this computations across multiple distributed computers/nodes is called mining and miners respectively. They are compensated with some value (the crypto currency) which I will discuss in another post in future.
There are hundreds of different types of these Blockchain ledgers each solving a particular real life use case and consumer need. All blockchain technologies are still based on the original idea of Bitcoin creator – The Great Satoshi Nakamoto – and now it has been taken to the next level. I think this is just the beginning.
#3 Reason for revolution: Immutability of Transactions. Hack-Proof
Once a data set or transaction is written to a BlockChain Distributed ledger as described in #2 above, the data is indestructible (written on stone). The records are immutable which means, it cannot be changed, manipulated or accessed by any un-authorized party. To hack information on a BlockChain ledger is nearly impossible as it will need a series of supercomputers programmed to change that one tiny record block across all decentralized nodes.
In case of centralized bodies such as big corporations where are data is stored in their centralized data centers, they cannot claim to be hack-proof. The evidence is the recent hacks of some major corporations proves the point. These hacks affect real world consumer value and commerce.
So that’s it! These are some of most important features of BlockChain technology that makes it revolutionary. There are several other reasons that are all related to the above reasons, however this will hopefully give you some indication on the importance of BlockChain and why it’s here to stay!
See you soon with Part 2 of 5..Take care and the learning continues…
