Most of us may experience a cashless society since we already utilize “Mobile Banking” to pay, transfer, or even invest in stocks with just a single tap from our banking applications. Now we would like to step over to the future of banking and investment.
This thing is called “Blockchain.” Does that sound familiar? If yes, you have heard something that could change the world forever.
“Blockchain” is a decentralized computing and storage technology. It is also known as Distributed Ledger Technology (DLT), and it is a data recording format that employs cryptographic principles and a consensus mechanism.Data recorded in the blockchain system can be difficult to modify. It improves accuracy and reliability of information.
No bitcoin, no blockchain, perhaps. Bitcoin is the first cryptocurrency, which was introduced to the market in 2008. Satoshi Nakamoto, the inventor, intends to create the banking system without the bankers per say. Then he invented the Blockchain to cut off the middle man and could possibly track every transaction with its digital footprint.
The middleman, the banker or the broker, is usually so important, but do not be confused, they are not doing something wrong. On the other hand, we have to work with them because we can not show the digital money by ourselves. That is because the money you want to transfer is deposited at the bank, so the bank has the duty to do it for you as the representative.
So it’s a business opportunity. These businesses act as reliable intermediaries for both parties. Therefore, we must believe that the intermediary will be honest. will always update the account for everyone correctly. Ultimately, the most important thing is that we must always trust that this intermediary will not cheat us, not secretly modify information, or give benefits to other customers.
How does the Blockchain function? Blockchain is a technology that can create a system that decentralizes the trust of intermediaries. So we don’t need to trust intermediaries anymore. Or allow us to do transactions in a peer-to-peer way. The idea behind Blockchain is that instead of banks storing our account information, we can store it ourselves. Why don’t we all use the same account and let everyone get the same copy and keep it?
Why do we call it “Blockchain”? Blockchain is a method of storing account information. It is easy to imagine that when a new transaction comes in, it will be piled together. When a certain amount is obtained, we will pack those transactions into a block and close the box. When we close the box, we will get a new box or a new block. Blockchain is not like other forms of accounting.We do not go back to open old account boxes to edit or update transaction information. But new transaction boxes are constantly being created in one direction. It will always link and reference the reference with the old box. It is in the form of several boxes with chains linked together. It’s called “Blockchain itself.”
As mentioned earlier, currency is just one of the Blockchain applications. We can also bring a trustless system built on blockchain to transform businesses that currently rely on intermediaries as well. For example, on social media, e.g., Facebook, Instagram, or eCommerce like Amazon or eBay.
Comments (No)