Why is Blockchain so exciting?

Sarah Dunsby

Source: @Photoshot

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If you are like most people, you probably think that blockchain means Bitcoin or some other cryptocurrency. After all, it is Bitcoin that has been getting all the press lately and there are not a lot of other blockchain based applications that have received the same kind of attention.

2018 is set to be the year that this all changes. Many blockchain based projects will move from the planning stage to the implementation stage so expect blockchain tech to come into its own.

The simple fact is that there is a lot more to this technology than anyone could have realized. If you check out sites like bitfortune you will see that there are hundreds of cryptocurrencies that can be bought and sold.

Each of these represents a potential application as tokens are often sold as a way of funding projects. Some will do well and others not, but there is a lot of variety in this space.

The blockchain based tech has already had a massive impact on financial services industry. It is changing the way that banks look at securing their networks, how insurance companies operate, and a whole host of other issues at the same time.

Because of this tech, banks have been forced to stand up and take cognizance of the fact that there are better, faster, and less expensive ways to perform transactions. And that is all to the good of the consumer.

But it is not only the financial services industry that is being disrupted. As you can see in the infographic below, there are several different industries whose future looks brighter thanks to the developments in this field.

Why is it so disruptive?

The technology is extremely disruptive because it is a completely new way of doing things. Whereas before the data would be placed on one computer or server and protected by firewalls, it is now spread over several different computers within the network.

Contrary to what you might think, this makes things even more secure – hackers could ostensibly hack a computer within the network, but to effect any changes they would have to have control of at least 51% of the overall network.

Another interesting benefit is that it can help reduce costs overall. A company may decide to create a database based on this tech and create its own private network. Now, while the company still has to pay for the network to be maintained, it does not need to pay as much to secure it.

It does not need a server farm and does not need to be as concerned with Denial of Service attacks. (If one machine in the system is hacked and shut down, the others can still operate.)

Finally, this way of doing things has another very important advantage – increased computing power through linking to the network. This allows the creation of the so-called “world computer.” So, even if you do not have the computing power to do something, you could rent it from someone else.

Overall, it is extremely interesting. What makes it even more exciting is that we are in uncharted territory. What does the future hold? The only thing that we can say for sure is that it is bound to be interesting.

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