Many, are calling the blockchain the next evolutionary stage of the internet, “I believe that this is now the next generation of the internet and that it holds waste promise for every business every society and for all of you individually” as stated by Don Tapscott, co-founder, and chief executive of the Blockchain Research centre.
The web is based in 2 simple facts, copying and distributing information across email, video, and data, all are copies, as an example if you watch a video posted online, or simply receive a straightforward email your just watching a digital copy of the initial data.
What if we can bring this to the next level, by adding value to the picture? What if we can involve assets with real worth? such as contracts for a house, a car, votes, or perhaps digital identities. The only downside to this is that you really don’t want to have these things as copies, you don’t want to transfer £1000 to somebody and still have an equivalent amount on your name, referred to by cryptographers, as, the double-spending problem.
Giving the name, it is merely the state when you have 2 digital copies of something that in theory ought to have only one identity, the blockchain, is the first technology of its kind that can solve this downside. For the first time, the web could be designed and based on real value.
According to the FITS model for the blockchain system, the best places that the blockchain could do wonders, are places where there exists a high chance of fraud, where we can find intermediaries or middlemen, environments with high throughput and also stable data.
Dr. Adrian Mccullagh (blockchain professional with a Ph.D. in IT security) underlines in his work, that this is often why blockchain is being used in, international finance transactions, additionally if you find yourself in an environment where there are middlemen or intermediaries, then you will be able to get rid of those parties, if they do not provide value.
Needless to mention, we have a possibility to reduce an average transitioning time from a couple of days to a couple of minutes, just by taking away the middleman.
Another consideration, is throughput, it is acknowledged that Bitcoin will make only 10 transactions per second and in Mastercard and Visa can do roughly eighty thousand, per second, resources are currently looking into this matter and are trying to extend the throughput.
Useful blockchain applications
Blockchain, registration systems with regards to the land and real estate industry are being looked at now in Honduras and Sweden.
Nasdaq stock exchange will begin shortly to use blockchain to record and evaluate trading.
The bank of England has expressed an interest in the blockchain saying that it is a serious innovation when speaking of the traditional financial system and future possibilities, also more banks within the UK are planning to form a cryptocurrency that may help to clear the clutter for the transaction system.
On the social media front, Steemit and Ttube, the primarily youtube rival, are using platforms based on the blockchain technology streamers and vloggers can get paid in cryptocurrency for creating content, a brand new direction where social media could thrive.
Even better, thanks to the blockchain technology, we will currently grow companies, that are distributed and also fully automated, thing that could never been done in the past, and may provide limitless potential. This can mainly be done, using something called Smart contracts.
A car buying analogy
Let’s imagine, that you want to buy a brand new car, traditionally you would go to a dealer, or individual you’d check that the details of the car are correct, you’d try to discuss and acquire the best price for the car, transfer the money from the bank, sign the documentation, wait for the money to clear and only then you could say that the car is finally yours. In theory, this might take, anywhere from a couple of days to a week.
Using the blockchain on the other hand, this can be taken cared of in real-time, because the car is uploaded to the blockchain, you will already know that the details of the car are correct, due to the trust, that’s pre-built in the system, you’ll be able to purchase the car using cryptocurrency and all the details and ownership will be composed in a smart contract, so everything can be done in a matter of minutes, rather than days.
Further on, imagine linking this way smart contracts, in a decentralised and a fully automated organisation, the possibilities are endless and are now being adopted.
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