What the future holds for blockchain
Blockchain currently is the buzzword in the tech circles, with every other developer talking about blockchain apps and their immense potential; moreover, with the advent and regulation of cryptocurrencies, even the tech illiterates are now talking about the technology. But what is blockchain, when and how did it appear on the horizon and how it has evolved with time, and what does the future of blockchain look like. If you are intrigued by any of these questions, then you have landed at the perfect place.
The history of blockchain technology could be traced back to the early 1990s when Stuart Haber and W Scott Stornetta described a secure chain of blocks cryptographically; little did they know that only two decades later, their work would not only be acknowledged at the global level but it would mark the beginning of a new era of the internet.
Later on, some research was conducted on the decentralized currency, which would not be gold-backed and is not controlled by governments; however, it was not until the financial crash of 2008 that a white paper penned by the pseudonym Satoshi Nakamoto was published in which he talked about how the financial crash was one of the prime examples of how institutions and banks take the hard-earned money from working-class and use it for their own good until a crash comes and everything evaporates in thin air.
How Blockchain technology works
The paper highlighted that blockchain technology could create a currency that is not controlled by the government and has a fixed supply, just like gold. The paper further highlighted how the new currency would be minted. To understand the internal working of blockchain, let’s use the example blockchain developers use; bitcoin. In the case of bitcoin, everything is stored on a distributed ledger. Inside the ledger are millions of blocks; each block contains three parts; data, hash, and hash of the previous block.
Now in the case of bitcoin, the data contains the details of the sender and receiver alongside their transaction details, the hash is calculated at the time of data entry and is unique, just like a fingerprint. Now, if the data tampers, the hash would also be changed. Still, since the hash of the current block is placed in the next block too, hence if the two hashes do not match, that means the data has been tampered with. Tampering with one block would trigger a domino effect and hence a small change anywhere would send shockwaves all across the blockchain instantly and this is why it is nearly impossible to tamper with the data on the blockchain. Blockchain developers all across the globe are confident that this technology will serve as the bedrock for upcoming tech ventures, and it will soon be used in all fields of life, solving numerous problems.
Future of Blockchain and applications
Currently, blockchain is set to revolutionize all fields such as healthcare, food, and finance. Finance is the first field to adopt blockchain technology. Many modern banking institutions are exploring the technology and developing blockchain apps that could help them speed up cross-border transactions. Moreover, decentralized finance (DeFi) would also open new opportunities for the financial circles.
Blockchain gaming is also a budding industry that is expected to take the gaming world by storm, play to earn games are deemed a one trillion dollar potential opportunity, and with more than one billion players around the globe, it is all set to unlock the true potential of blockchain.
Blockchain also has the capacity and potential to revolutionize conventional state affairs. For instance, free and fair elections could be held through blockchain technology, and records could be saved on the distributed ledger, thus plugging all loopholes of corruption. It is believed that blockchain technology could potentially resolve 99% of the problems of governments as it offers dynamic and efficient solutions to all problems.
Blockchain in terms of technology has a bright future, as it could potentially solve a vast array of problems faced by various industries. Blockchain technology recently came to the rescue of the Ukrainian people during the war with Russia; as they could not access the physical banks, they used cryptocurrencies such as Bitcoin to buy their everyday use items. Moreover, after the banking sanctions were imposed on Russian citizens, most of them diverted to cryptocurrencies, showing the power of blockchain technology.
However, blockchain technology requires regulation by the government if it is not, then the applications would be very limited. Hence, currently, lawmakers are trying to regulate cryptocurrencies as the first step towards an era of blockchain.
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