What is the Block Chain? And what is its use?

Bitcoin, the digital currency that has created a new way of paying around the world, has the motto: In cryptography and trust. Bitcoin has come to remove the people we trusted, the bankers, from the financial exchange cycle and to replace cryptography and code. In a traditional banking system, the bank has control over any money that is withdrawn or added to your account. For example, the money you pay to a vendor with a card reader is transferred after a series of transactions. Digital currencies with a distributed and secure database, take the bank out of the financial exchange cycle. This database is called a blockchain. The first gift of the blockchain is the protection of users’ privacy in the field of financial transactions. There is no longer any fear of bankers misusing personal information.

A blockchain collects information as a group, called blocks, that contains a collection of information. These blocks have a limited capacity and can store a certain amount of information. When the capacity of a block is full and that block is filled, it is added and attached to the previous filled block, thus forming a chain of blocks containing information called a blockchain.

13 years after the first blockchain was built, people are asking if this technology can be used for applications beyond money transfer. In other words, what other things can be done automatically with a blockchain and remove people other than bankers from the exchange cycle? For example, can a blockchain establish a connection between people looking for a car and car owners to travel with? Can it be a source of television broadcasting while retaining the rights of the creators of the work? Can a blockchain-based program check the status of flights and reimburse people if a delay occurs?

The above is not a series of examples far from the mind, but so far a number of products have been made or are being built based on this technology. For example, a Swiss nonprofit called Ethereum has designed a platform of the same name that runs on a distributed processing system suite. The big players in the IT industry are not idle either, and they are offering their solutions. Microsoft has provided a tool for Azure cloud users to run the blockchain. IBM, Intel, and several other companies have designed a project called Hyperledger. Of course, none of these technologies have revolutionized the industry. Bitcoin has less than 400,000 users worldwide. However, the competition between different products will marginalize some of them and give others a share of the market.

Blockchain can be used for things you would not even think about: tracking shipments around the world, creating copyright, combating online plagiarism, and ending counterfeit products. These are just a few of the many examples of blockchain technology. Blockchain is known for its financial ability to record transactions, but do not forget that blockchain technology is more than just bitcoin money.

In addition to the financial aspects of the blockchain, more achievements can be achieved than the general ledger. Recently, several projects have been launched that have made it possible to use tools such as smart contracts, digital transfers of ownership, and even copyright to the top of the blockchain.

In terms of developing blockchain applications, it is now more focused on financial services. This is natural because Bitcoin is more focused on providing financial services to people in areas that do not have access to banks. Moreover, the blockchain is more commonly known as an open ledger.

Of course, there are other unknown potentials in the development of blockchain applications that it is not really possible to guess what the next application will be. But what can be said with certainty is that there are many different projects underway and non-financial projects are trying to improve various aspects of our daily life experience. However, as long as these applications are not properly programmed and implemented, they are just immature ideas.

What is the main idea of ​​blockchain applications? The blockchain is very similar to Bitcoin itself: restoring power to users without relying on focused services or companies. Because the nature of the blockchain is decentralized and transparent, its applications offer unparalleled technological advantages.

The power of blockchain technology is revealed by the steep slope of the learning curve. Expanding blockchain applications is not something that is simply overlooked. Even programmers need some time to become familiar with programming parameters and interfaces (APIs).

What is the main purpose of expanding blockchain applications? Its most important goal is to improve our daily lives and create transparency and accountability in the existing infrastructure, especially in the financial world, both of which are highly needed. There is still plenty of room for other areas of technology to be developed using blockchain. The developments of the coming years will give us a better framework for the limits of our expectations of blockchain technology.

The description of blockchain is very broad and long, and in this article, only a small part of it will be stated and will be discussed in detail in future articles.

Instagram