Blockchain - disruptive technology
Blockchain Technology is a disruptive technology. Blockchains are distributed digital ledger systems held across multiple nodes/computers within networks whereby transaction data cannot be tampered with retroactively without changing all subsequent blocks – meaning they offer unparalleled security compared to traditional centralized databases.
Due largely decentralization, they tend to negate single points failure making them incredibly resilient structures. Combined, properties allow individuals to communicate securely peer-to-peer online eliminating middlemen often present control processes simplifying workflows & increasing transparency. Although still in its infancy, many believe harnessing the power in such a revolutionary concept holds immense potential not only in the payments sector but in a number of industries that would allow us to open up a whole new world of possibilities previously unimaginable.
Blockchain technology is considered to be a transformative technology. Cryptocurrency is one of the transformations.
Why blockchain technology?
The industrial revolution was perhaps one of the biggest game-changers in terms of technology. This period saw the introduction of new manufacturing techniques and machine-powered production lines that resulted in mass production at significantly lower costs. This newfound efficiency led to an increase in global trade as well as population growth since people could now afford better living conditions thanks to cheaper goods made possible by advances in technology.
Since then, there really hasn’t been any looking back – each successive generation has seen further advancements with no signs whatsoever that this trend will abate anytime soon. If anything, it appears that we are accelerating towards an even more technologically advanced future at breakneck speeds.
Centralized vs De-centralized
The intersection between Technology and Blockchain can be best understood by looking at three main areas,
- Data storage
- Security / Identity verifications
- Payments / Transactions
All three of these areas are ones where traditional centralized systems have long been relied upon but which are now being disrupted by decentralized solutions built on top of blockchains.
Decentralized Blockchain
In a decentralized blockchain network, no dependency on one another, eventhough no one has to know or trust anyone. In the network of blockchain technology everyone has the copy of same data in the form of distributed ledger. If any of the member’s ledger has changed or corrupted for any reason, then it will be rejected by the members in the network.
Eventhough blockchain technology is more secure it has some tradeoffs. When a blockchain network scales up or out, the network becomes more secure, but performance slows down because each member node must validate all data being added to the ledger. Adding members to a decentralized network can make it safer, but not necessarily faster.
Is Blockchain Technology a future?
Despite all its potential benefits, there are still many hurdles that need to be overcome before blockchain can be fully realized within other industries like healthcare. For instance, regulations surrounding health data privacy need to be clarified before companies can start using this type of sensitive information on a distributed ledger. Additionally, standards must be developed so that different blockchains can communicate with each other seamlessly. Furthermore, creating a large enough network effect will also be crucial for success – convincing both patients and providers to use a new system powered by blockchain will not be an easy task.
Conclusion
In this emerging area, there is much to be done and much that can be done to improve and advance our understanding and the utilization of such technologies. Blockchain technology is a backbone technology. Similar to the rising of the internet, blockchain has the potential to disrupt multiple industries and make processes more democratic, secure, transparent and efficient. Entrepreneurs, startup companies, investors, global organizations and governments have all identified blockchain as a revolutionary technology.