Technology is highly dynamic. It changes with time, every day we hear some new developments in this domain. The latest addition to this is “Blockchain,” a name which has taken the world by storm. It would not be wrong to claim that it has laid the foundation stone for the future growth. Being one of the most promising technology, the story was not the same as it is today. The concept came into existence came with Bitcoins. However, soon it overcame the shadow of financial transactions and posed to be the underpinnings of future business niches.
It has become a buzzword today and with all the good reasons for backing it. It can change how the internet currently structures and how we communicate.
Many of the propagators of blockchain are posing it as a future internet. Well, there is a big difference between the internet and blockchain technology, whereas the internet works on centralization, decentralization is the base for blockchain. It is undoubtedly an ingenious invention.
One minute review on Blockchain-
To understand, how blockchain is posing to be the new internet, we must have a quick review of this concept.
The Blockchain is a digital ledger which is a storehouse of all the transactions. The transactions are added as blocks and are verified and validated by nodes. The information or the transactions or the blocks are not present at a central location; instead, it is spread across the network. Hence, the information is unalterable and unchangeable.
I would like to compare blockchain with Google Docs. Like in Google Docs any change or alteration is visible to the people with whom the information is shared; it is similar to the blockchain concept.
Blockchain will lay the foundation of Web 3.0
When you ask the question if blockchain is laying the foundation stone for the new age internet, would like to say, YES. The reason behind this is simple; it has features which can overcome the loopholes in the current system. I will be taking this one by one:
Let’s get the ball rolling –
- Maintenance of digital identities- It won’t be wrong to claim that in the current era of the internet, we have many digital identities and with so many numbers, it is difficult to remember everything. With blockchain, we can cut this down and create a system where everything is user-centric. Unlike the traditional internet system, the blockchain technology is user-centric.
- Transparent – The best part about blockchain is a transparent system. It means that you can see everything, trace it and track it. The internet became popular because it simplified the process and operations. Similarly, blockchain aims to make further the process seamless and streamline every aspect of the business.
- Decentralization – The problem with the traditional internet technology is its centralization. It means that everything is controlled and maintained centrally, which means in case something goes wrong at the central server can upset the entire system. However when we come to the blockchain, hen the whole system is decentralized. Thus, there are least chances of losing any information making blockchain a promising concept replacing the internet.
- Secured transactions- Another key feature which makes blockchain a popular concept is a security which it offers. Blockchain gives a platform where you can ensure a safe and secure operation. The distributed ledger creates an immutable and tamperproof log of transactions. Since you cannot change the information in this ledger, all the records are safe and secure.
The Bottom Line
However, I would like to quote here; blockchain will not work alone, it will work along with the internet. To put it in simple words, blockchain is an improvisation of the internet.
It’s a known fact that blockchain has an endless list of applications and it is finding usage in almost all the business niches. However, there are certain loopholes which still needs to be mend. For example, lack of regulation. We all know that blockchain lacks control and this is the reason which makes people sceptical about this concept. In case of fraud, you don’t know whom to contact and get help. Thus, the creation of regulatory authority is the first step to make it a part of mainstream functioning.
Amidst all this, we can say that blockchain is defiantly creating new business models, it is paving the way for new applications, lowering the cost of current services and dis-intermediating the current service providers thus making it a popular concept.