What is blockchain?
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. The blockchain is a public ledger. While the original intent was for it to contain bitcoin transactions, a transaction might now be anything from contracts to records to digital representations of physical assets.
Whenever somebody send the coins a transaction is created that contains, the wallet address of the sender, the wallet address of the recipient, the amount of currency sent and some other details. These transactions are added to an unverified block. Once it is added it cannot be edited and cannot be removed (immutable).
Once the block is filled, miners will verify the transactions and the block is ready to be attached to the chain. Each mined block is then attached to the rest of the blocks in the blockchain. This chain of blocks contains every single transaction executed in the history of the cryptocurrency.
This transparent and immutable nature of the blockchain also solves the problem of trust.All transactions are stored on the blockchain and broadcast to every user of the blockchain. Blockchain can not have a single point of failure and it is can not be controlled by a single entity. Altering information on the blockchain would require tampering with the entire network at once.
The blockchain is likely to disrupt many industries in coming 5-10 years. Here are some of the blockchain use cases:
- Banking and payments
- Cyber security
- Suplychain management
- Forecasting (research, consulting, analyst and consulting)
- Networking and internet of things
- Insurance (managing trust, identity real world data
- Private transport and ride sharing (automatic payment for parking, gas…)
- Cloud storage
- Charity (inefficiency and corruption
- Voting (rigging results)
- Government (reduce bureaucracy and increase security, efficiency and transparency)
- Public benefits (social help , basic income)
- Health care data (lack of secure data storage and sharing)
- Energy management
- Online music (musitions to get paid directly, licence issues
- Retail (connect buyers and sellers without middelman and fees)
- Real estate ( tracking, verifying
- Crowdfunding (trust between supporters and creators)