We often hear that Blockchain is an important technology that will change the world. But, what is it from a practical perspective? The answer to that is that blockchain is decentralized ledger technology that allows transparent and immutable record-keeping.
But what are these damn ledgers and why are they so important for mankind?
Ledgers or records are the most important invention of the human mind. Without it, there will be no organized farming, no recorded history, and no scientific process as we know it. Records are the foundation of every human subject from humanities and arts to mathematics and computer science. Much of the development of the world is owed to the right kind of record keeping. A record-keeping that is free from tampering and easily accessible around the world.
Before the internet, we had physical records that were susceptible to fraud and their information wasn’t readily available and guarded jealously. With the age of the internet and Information Technology, the records have become widely available but the tampering and falsification have increased to unprecedented levels. This holds especially true for financial records of banks and financial institutions which if tampered can have devastating effects on the world economy.
Enter Blockchain Technology!
Blockchain technology is a decentralized, transparent and secure record-keeping approach initially promoted by the Bitcoin Network and later updated and promoted by several useful blockchain projects like Ethereum. The technology envisions a new paradigm shift in record keeping. Instead of keeping records on a centralized server that can be hacked and have its contents adulterated, blockchain relies on a network of decentralized servers (also called nodes) who continuously tally the record with each other and help make it safe and secure.
While the idea is relatively simple enough, the astronomical change it can bring to our world cannot be understated. From government food silos whose records are corrupted to the ever-complex supply chain systems being adopted around the world, there is a place for decentralized ledgers everywhere.
Blockchain technology can help break monopolies, increase competition, help in the ethical sourcing of food and drinks and even help achieve better yield from crops. Ledgers are everywhere even in our daily lives and will be transformed with the help of this disruptive technology in the near future.
There is a reason why companies from Facebook. Amazon, Walmart, IBM, Carrefour, and others are working on blockchain-based projects and why Bitcoin, the premier cryptocurrency backed by blockchain technology is worth $180 billion. All of this is because the new alternative provides an immutable, publicly accessible and universally verifiable approach to a millennia-old problem.