The Blockchain Technology Explained – The real value of blockchains and crypto currency technology

What if there is a technological advancement so powerful that it transforms the very basic pillars of our society? A technology which fundamentally influences the way that our economy, governance systems and businesses function,and change our conceptual understanding of trade, ownership and trust? This technology already exists, and it’s called crypto currency People often think of crypto currency as only virtual money or a transaction system

But if you look closer, you’ll see that the monetary aspect, is just the tip of the icebergThat’s because Bitcoin is a ground-breaking internet technology for which money is merely one of the possible applications crypto currency enables a network of computers to maintain a collective bookkeeping via the internet This bookkeeping is neither closed nor in control of one party, rather, it is public and available in one digital ledger which is fully distributed across the network We call this the Blockchain

In the Blockchain, all transactions are logged including information on the time, date, participants and amount of every single transaction Each node in the network owns a full copy of the Blockchain On the basis of complicated state-of-the-art mathematical principles, the transactions are verified by the so-called crypto currency Miners, who maintain the ledger The mathematical principles also ensure that these nodes automatically and continuously agree about the current state of the ledger and every transaction in it If anyone attempts to corrupt a transaction, the nodes will not arrive at a consensus and hence will refuse to incorporate the transaction in the Blockchain

So every transaction is public and thousands of nodes unanimously agree that a transaction has occurred on date X at time Y It’s like there’s a notary present at each transaction This way, everyone has access to a shared single source of truth This is why we can always trust the Blockchain And each crypto currency is both individually identifiable and programmable

This means that users can assign properties to each unit Users can program a unit to represent a eurocent, or a share in a company, a kilowatt-hour of energy or a digital certificate of ownership Automizing such matters leads to a considerable decrease in bureaucracy, which saves accountants, controllers, and the organization in general an incredible amount of time but there is more In an 'internet of things', our economy will be dealing with machines that actively participate in the economic trafficIn fact, they are already here

Think of a vending machine or drones delivering packages These machines are unfamiliar with the concept of trust, Because of the blockchain, the drone can be a hundred percent certain that it will deliver the package to the right recipient and know for sure that it has been paid forAnd we can program the vending machine in such a way that it will automatically keep track of its supplies, order new supplies from the supplier and pay for them automatically Of course, you will understand that this is only the beginning

Internet technology is disruptive and breaks the status quoIt opens markets and breaks the positions of middlemen all the time Blockchain and crypto currencies have caused a paradigm shift It’s time to explore this new technology constructively and critically, and openly discuss the potential applications

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