The absence of a centralised data storage mechanism in Blockchain is what eliminates the risks of data security from this technology. The blockchain is essentially a network of nodes and the data distributed across the network makes it difficult for hackers to operate. The internet is vulnerable to data extraction as most of the security measures rely on a username and password. But blockchain facilitates encryption to ensure data security.
The encryption tool used in a Blockchain involves both public and private keys to protect data. The digital assets transferred identify the user's address using the public key which is a long chain of randomly generated string of numbers. The private key functions as the password that enables the owner access to their digital assets. It is the distribution of digital information and not copying, that has made blockchain technology a new type of internet. A node gets a copy of the distributed data of the blockchain, which gets downloaded automatically upon joining the blockchain network which creates a second level network giving a different dimension to the functions of an internet.
Though the blockchain technology was initially devised for the generation of cryptocurrencies, potential uses of this technology are innumerable. Besides, you don't need to know much about the blockchain technology to benefit out of it.
Presently, finance offers the strongest use cases for this technology. Data once stored on the blockchain remains incorruptible. Information stored on the network is authenticated and this is what makes the blockchain the most reliable platform of operation bringing numerous applications under one umbrella. Beginning from the ledger system that blockchains essentially represent - a distributed ledger system can facilitate simple transactions or a smart contract. Smart contracts are simple applications that are generated with the meeting of some small requirements. For eg., rewarding a customer for acquiring a certain amount of credit points. These can be automated easily using blockchain nodes and rewarded using cryptocurrency.
Blockchain nodes will augment shared services requiring peer to peer transactions. This can enable direct interaction between the users for shared payments. This would also mean that personal reputation would have a greater leverage to business transactions than ever before. File storage on a blockchain would be more secure protecting it from chances of hacking due the distribution of data. A network of decentralised websites will speed up data or file transfers which is an area of concern in the currently congested and overloaded network systems.
Pooling of crowd opinions for important data analysis can be made easier. Statistical analysis will be more accurate with timely data sourced in through reliable resources.This will further boost the prediction market that will give an added leverage to stock market, election results, weather forecasts and related fields. This will also authenticate crowd funding.
Consumers across the world can check for product or supply chain authenticity. The distributed ledger system addresses concerns of customers.This will enable them to verify claims by companies about their products. Transparency comes with the blockchain-based timestamping of date, location and product number.
Data Management and trading of data becomes all the more easy. The data can be transferred in fractions through amounts of cryptocurrencies that can be distributed easily and will be gaining more currency in future.
In this era of the Internet of things (IOT), there are several systems that are controlled by the internet. They can be office monitoring, temperature controlling etc.. Automation of these remote systems is possible through blockchain, improving efficacy and cost monitoring. A failure prediction of the system is more possible with this technology than ever before. This can scale automation systems further.
This can further aid in the buying and selling of renewable resources, with Microgrids very active in the production and selling of power. Blockchain nodes are better equipped with dealing these transactions in a hassle free manner.
What the blockchain gives its users is the ability to create value and authenticate digital information. This will underline the need for better identity management on the network. Transactions online are closely connected to the processes of identity verification.
If the use of Graphical User Interface has changed the face of personal computing, Blockchain technology is all set to change money transactions through their cryptocurrencies in a way never thought about before.Published: Nov 13,2018 08:17:17 AM IST, Updated: Nov 13,2018 08:21:11 AM IST