Published on Oct 13, 2017
Image Source: blockgeeks.com
“Trust” implies a feeling of security. It is the foundation of every human connection, culture, and community. In fact, our entire civilization depends on trust. Trust means exposing your vulnerabilities to someone and believing that they won’t take advantage of that.
Time to time many governments across the world have shown that they can’t be held trustworthy, many banks have broken the trust of people by looting their money.
Let’s assume, you want to transfer money to a person. This process will involve a third party, using which the money is being transferred. Now the question is — Can you trust the third party? What are the chances that the third can do a fraud with your money? Well, the third party is a monopoly here. They can do the fraud because they know people will still use them since they are a monopoly. People have no other choice.
In 2008, An anonymous person or group known as “Satoshi Nakamoto” published a paper detailing a system called Bitcoin that could challenge the most powerful monopolies in the world. It was the first system to show that two person can exchange a value on the internet without using a third party. Bitcoin currently has the market capital of nearly $93 Billions (as of 13th Oct. 2017) which is greater than that of Goldman Sachs.
Blockchain is basically a distributed database kind of system. Assume a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet. Information held on a blockchain exists as a shared and continually reconciled database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
Blockchain is the backbone of Bitcoin. All the transactions of Bitcoins are stored in a ledger. This ledger is known as Blockchain. As a transaction is done, all the bitcoin miners do some complex calculations and verify the authenticity of the transaction. It doesn’t require just a single party. There is a community of millions of miners. Because it is not just a single party, it is the whole community, there is no chance of fraud. We can trust the blockchain.
Blockchain has a very bright future. Its ability of transparent, secure and distributed computing make it the replacement for many existing traditional things. It can be a replacement for third party payment companies such as Visa, MasterCard and even banks. It can be base of IoT. It can validate and secure almost anything. From voter authentication to government processes, health information, and proof of intellectual property, Blockchain can serve as a secure process to validate almost anything of value, and to keep it safe. Indeed, because of the Blockchain structure, it’s far safer than standard cloud environments.
Long live blockchain.
Thank you for reading. Have a nice day.
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