Block chain Technology
Blockchain, the technology that powers cryptocurrency.
There are many myths about blockchain but to tackle those we must understand what exactly blockchain is.
Suppose there are four roommates, they decided that they will share their expenses and at the end of the month they will split those expenses. For this purpose they maintained a common register, after few days Mohan noticed an irregularity in it, but there was no way to verify the source of it.
So from the next month, they decided that each one of them will maintain a separate register and they will write all expenses in it. In this case, even if someone tries to add a false expense he/she will get caught since it can be verified with other ledgers.
This is exactly how blockchain works, every participating member will have a separate register which will be updated every time a transaction is made, which necessarily means that every participating member acts a safeguard measure to protect the system, which ensures safety for all since everybody is under the radar.
The fact that no one is the boss, makes the blockchain a platform of trust since you are the one in control of your own data. In a way, blockchain is the most democratic medium ever developed, since it is developed by the people for the people and maintained by the people.
Some people believe that blockchain is cryptocurrency, which is not true. Cryptocurrency is the first mass-scale successful application of the blockchain. The blockchain is the technology of the future since privacy issues are a big concern, blockchain eliminates much threat since everyone act as a vigilante.
Another myth is that since the blockchain is publicly available and verifiable so everyone can participate in it. But the reality is that blockchain is NOT public. It is private and is shared only amongst the individuals who participate in it, your data (blockchain) can be verified only by the participating members, and your data is not compromised.
Another general myth is that blockchain is free and easy to implement. The blockchain is neither free nor easy to implement since everyone is maintaining the chain, which means that everybody is maintaining a separate machine to store the ledger, which means that as the number of participant increases, the amount of computational power increases with it, thus increasing the cost.
But we must not let these downsides demotivates us. Blockchain has many benefits along with it. Some of them are:
Transparency: The system is completely transparent. There is no one who controls the whole block, everyone is responsible for maintaining the system
Decentralization: A record of ownership based on blockchain technology is not controlled by one single entity or organization. Hence there is no central authority which can freeze or take control of your assets should they want to.
Single point of failure: Even if a hack occurs or a system fails there will be no effect on the entire system since the data is secured with many systems who will continue to protect the blockchain.
The blockchain is the future, but we must be careful. Blockchain can provide a layer of security and transparency but it can also boost illegal activity. It is for us to decide the way we want to shape our future. Blockchain is still in its infant stage. We must be ready for the future that lies ahead.