Blockchain is a hot topic, and has become increasingly more dominant in the tech world during the last few months. But: what is it, and why does it matter? Digitalization changes the way people interact. These new interactions require new technologies: nowadays, transparency and cybersecurity have become essential for success in innovation. Blockchain, in turn, fulfills this need for transparency and security. In this blog, we’ll dive into what blockchain is and why it matters.
Blockchain is a decentralized connected system of blocks. In other words, it is a network of nodes, where every node is a computer. The interesting thing about this system is its decentralization: this allows us to, for example, share documents or transactions without control of a central authority. Unlike centrally organized systems, every node of the network is a blockchain administrator.
Blockchain was created originally for Bitcoin, the world’s first and most famous digital currency. However, nowadays it’s used for improving any kind transaction, as it allows to virtually distribute and share value. In today’s world, where we spend a large part of our money online, this is essential. Blockchain’s usefulness today reaches far beyond the world of cryptocurrency: it provides a decentralized way to register or share almost anything.
Essential to blockchain is its decentralization. This is also what makes blockchain important: no central version exists. This prevents losing data, data being hacked, or fraud. Contrary to centralized systems, every record is updated in every node instantaneously and simultaneously. That means that every computer created its own updated version. In addition, this system is incorruptible because the nodes are connected through a secure validation mechanism.
On top of this, transparency of transactions contributes to the importance of this network: because it’s public, it is instantly verifiable. For poorer countries with corrupted governments, this could be a game-changer as it makes corruption and fraud near-impossible.
In short, blockchain enables general optimization of different transactions as well as money’s saving.
We can try to paint a picture of what blockchain’s near future has in store. It is no surprise that we expect growing usefulness of blockchain technologies in both everyday life and commercial activities. Blockchain technology has the potential to revolutionize several aspects of business. The world is becoming increasingly more globalized, and this is reflected in international collaboration requiring new levels of online security. Because of its general applicability, the possibilities are almost endless. To give you an idea, we’ve listed some possibilities for the near future:
Blockchain is popularizing at a high speed. As a result, gaining the skills required to work in the field set you up for an exciting future. Demand for blockchain developers is increasing, and there are many vacancies unfilled already. As more institutions implement blockchain technologies, your career chances improve.