Our vocabulary is developing at swift rates and all the time new words are penetrating in the word stock. The process of penetration is so fast that quite often we even don’t understand the meaning of this or that word. In this article today we will start to enlighten you, beginning with the following word: blockchain.
First of all, let’s have a look at its meaning. So, what blockchain is? It is a distributed ledger technology. In other words, one and the same information volume is kept on a great amount of computers that are interrelated. The scope of information belongs to a great number of its owners. By doing so the information is under reliable protection. At the same time it is practically impossible to bring any changes in the system unnoticeably. If somebody tries to do it, the rest of Users will notice it.
In each block of the chain hash-coding is used. The hash –coding is based on math formula. It is formed on the basis of the previous block of the chain. If there are any changes in some of the blocks, there will be hash failure.
Can we say that blockchain is practically airtight? Actually, in reality we can hardly find airtight things nowadays. But one thing that we can say for sure is the following: it will be really hard to hack. Comparing blockchain at the moment with other systems, today this system is considered to be the best one. Of course, there exists a threat, and the threat is quantum computer. The danger for the system is that QC’s processing speeds is so high that it makes impossible to notice any changes. Good news is that such kind of computers is under development. As soon as such computers appear there should be introduced new ways of data protection.
Blockchain is an ideal solution for those parties that don’t trust each other. But blockchain gives them an opportunity to work on equal terms. Today blockchain is a guarantor of honesty in bitcoin. Information about changes and each monetary operation is seen by all computers that are in the chain.
There can be given lots of examples where blockchain can be used. Let’s take insurance, for instance. If something happens the system can identify at swift rates if the case meets the terms of compensation. Imagine the following situation: a person has broken his or her leg, and hospital registers the case. According to the terms of compensation, the person is to be treated abroad. The system automatically makes a booking, and book a place at health facility.
Is it possible to live without blockchain? Actually, lots of operations can be conducted without it.
What if the blockchain will be given mass distribution in future?
Blockchain can be really a good thing for financial sphere. There can be mentioned the following possibilities: the reduction of transaction expenses, also this system will help to solve the problem of distrust among Users of the system.
At the same time we should say that blockchain is not so ideal, as it seems to be. There exist risks of course. And the nature of those risks is juridical. We all study what blockchain is but at the same time understanding is not enough, there should be done considerable changes in business processing and infrastructure. Besides, there still exists distrust between the participants and fear that someone can change my boundaries. From theoretical point of view of course, it can be done.
The prognosis concerning the spread of blockchain all over the world vary wildly. Some say that 1,5-2 years is enough for the process, others give 7-10 years. But at the same time there exists such a possibility of appearance of new QC, and there will be no sense in blockchain.
Let’s have a look at the phenomena once again and underline it’s the most significant points:
- Blockchain is considered to be one of the safest ways of keeping and sending information, probably in future it will supersede other systems.
- There doesn’t exist agreement of opinion that blockchain will penetrate in every corner of the world, the time for spread varies from 1,5 to 10 years.
- If there will be introduced QC there will be no need in blockchain.
- Today lots of operations can be done without this system.
- Blockchain presupposes finding the solution to distrust between Users of the system.