What Is Blockchain And Where Is It Used

Show:

January 6, 2023 Business

Interest in the latest blockchain technology has grown in line with the growing popularity of cryptocurrencies. Today, this technology is being tried to be used not only in finance, but also for computer games, for storing and processing data, and in marketing. However, according to buidlbee, not everyone thinks that it is worth using blockchain technology everywhere. So say, for example, Web3 developers.

Despite this, today we will look at what blockchain is and where it is used.

What is blockchain

In reality, blockchain is a sizable database where data is kept. To help you comprehend you can visualize a diary in which numerous entries are written. This diary is decentralized – that is, it does not have owners or an owner who keeps it alone. This means that the diary cannot be changed by a single individual, organization, or state and say that it was so. The database (diary) is accessible to all users of the network, and they can all examine it and add new entries. Decentralization makes the blockchain transparent and safeguards against fraud in this way.

The database is divided into blocks of data – it’s like pages in a diary. Moreover, each next page contains information about the previous one, so a chain of blocks is formed. Each block has:

Checksum, which is calculated from the entered data;

Own unique identifier – a number that allows you to quickly find a specific block if necessary.

The checksum prevents changes to the database from being made invisibly. All participants will see this immediately.

With the help of blockchain technology, a guarantee of the immutability of information is achieved. In order to covertly make changes, it will not be enough just to correct one line, it will also be necessary to recalculate all the data that was added after it since their checksums will change.

The main areas of application of blockchain technology

The crypto industry is the most well-known area of blockchain application. Bitcoin and other cryptocurrencies have made the world aware of this technology. However, the possibilities of blockchain are much wider. A transparent, publicly accessible database can change many areas of the economy of different countries.

Banking. With the help of the blockchain, it is possible to carry out money transfers without intermediaries. This will help you avoid extra fees. In addition, the blockchain will lead to the transparency of the banking system – financial institutions will not be able to make retroactive changes and falsify reports.

Copyright. Technology can help artists, musicians, photographers, writers, and other creative professionals protect their intellectual property. Information will be added to the database that the photo was taken by a specific photographer. It will be impossible to forge this entry, change or delete it.

Real estate transactions. Blockchain will make the registration of property rights more secure. A single database without the ability to make changes will eliminate the possibility of double sales of apartments. In addition, based on the technology, a blockchain passport can be created – the technical characteristics of real estate (footage, number of floors, communications, load-bearing walls, etc.) will be entered into the registers.

Blockchain technology and the UN

One of the most important characteristics of cryptocurrencies from the point of view of the UN is their transparency. Blockchain technology is well-protected from hacks and fraud, it is a reliable and transparent way to maintain accounts. This is crucial in places with corrupt officials and weak institutions of government.

Employees of the World Food Program (WFP), who, in particular, provide humanitarian assistance to displaced people in the form of cash, have come to the conclusion that blockchain technology can be very useful in their work – it helps them to make sure that the money went directly to the addressees, because in this network all records of transactions are registered, none of them can be deleted.

Blockchain, according to the UN, can also help people working in the informal sector to receive a well-deserved reward for their work.

Conclusion

What people of the 80s read in fantasy stories is already coming true. The future has arrived, and blockchain has become one of its manifestations. Today, this term is associated with cryptocurrencies (another product of the future that is already here).