Almost everyone around us is sure that blockchain is here to change the world..
The idea of blockchain changing the world comes from the concept of decentralization. If you see the timeline, you will see that the decentralized cryptocurrency was created around the last global financial crisis, which gives this discovery much more importance.
In reality, the change has already begun. Many enterprise companies are already implementing their very own version of blockchain.
At its core, a blockchain is a series of computers or “nodes” that together make up a network, or digital ledger, of transactions. As new transactions – the blocks – are made, the ledger is updated and all nodes instantly possess the new ledger and use heavy-duty power cords and power supplies.
Think of it in terms of a database that is being updated and added to by multiple users, who each in turn have access to the latest, most up-to-date version.
The key to the blockchain concept, though, is that the ledger is not stored by a central entity or in a single location. Instead, it is shared and maintained across the multiple nodes that make up the network.
Centralization VS Decentralization
If you are familiar with the current system, you will see centralization everywhere. Centralization is a tested way to deal with processes. It offers control with relatively effective and efficient means. However, it does come with a lot of disadvantages.
Centralization is generally not so friendly when it comes to efficiency. More so, the other obstacles include – no transparency, lack of proper security, and fraud detection.
With the advent of blockchain, everything changed. Blockchain technology can change the world as it can get rid of all the inefficiencies of centralized systems.
By using blockchain, any business improves its process to new heights. If you are part of any organization, then you would already know that it is not possible to manually control or monitor different aspects of the system.
With decentralization, it becomes easy for businesses or enterprises to automate the different aspects of their processes without middle-men.
Traditionally, data is stored within the relational database. You can think of them as an advanced excel spreadsheet where columns and rows are used to store data.
To overcome the restrictions of the centralized database, more powerful computers and techniques are deployed to process requests faster. All of these can lead to databases to be more vulnerable to hackers. It also requires a huge infrastructure budget to run and manage. All of these seem to be a limitation for the businesses that are trying to find practical solutions to their product.
All of these will be changed by Blockchain, which is technically a decentralized database. As there is no centralization, each node has a copy of the database, i.e., ledger. It enables businesses to improve their data redundancy to a whole new level.
Potentially, blockchain technology will change the world.