The Upcoming “Blockchain Revolution”

How Blockchain can just make society more convenient

Source: BinanceAcademy

What is a Blockchain?

It very much does mean what the name suggests : multiple blocks strung together on a chain

Blocks that are chained
Blocks that are chained
  • Data of transaction: Time, Amount transferred
  • Blocks store a unique identification sequence called “hashes”, in order for them to be identified from other blocks. The hash sequence is created by special algorithms such as SHA-256.
  • Blocks also store the hash sequence of the previous block forming a growing list / “chain” of blocks.

The Peer-to-Peer System in Blockchain

One of the key features of the blockchain is the P2P network structure.

Comparison between a server based network and peer to peer
Comparison between a server based network and peer to peer
Source: BitcoinWiki

Possibilities with Blockchain

Blockchains where the F.I.T.S. principle applies:

  • Intermediaries : Middle figures in transactions such as middle man
  • Throughput : Amount of transactions is limited
  • Stability of Data : When you don’t want the data to be volatile/changed (ex. Personal info, Transaction Records)

Elimination of Fraud

Using this shared digital record is able to greatly reduce fraud in transaction in an economic context. Through the distribution of the data via the P2P network, everyone can clearly what records or transactions are made. Therefore, transactions that are not intended and are fraudulent can be identified.

Smart Contracts

Same function as contracts in real life, however it is digitized and stored in the blockchain network. It can be a computer program that is stored inside a block of the blockchain.

Source: TouchBistro
  • Elimination for fraud (lying/scams) : As Blockchain records everything, and is shared to everyone, other people can’t make up human errors as excuse to take your stake
  • Elimination for potential losing of info : Banks have the possibility to lose your accounts and contracts because of human factors (ex. accidental deletion). Blockchain’s decentralized form allows you to have other copies of your documents all over the network’s nodes.
  • Speed in process of contracts and transaction : Code automates the process, allowing transactions to be much faster and less “running around” is needed.

Cons of Blockchain usage

Source: Steemit

Government Regulation

Through Cryptocurrency implementation, we can bypass certain transaction laws that enforce the transportation of money and tax. The blockchain also can’t detect money laundering and other fraudulent activities. In short: No government regulation.

Non-Modifiable data

What if you had made a mistake in your smart contract and needed to change it? Because a blockchain network and its records cannot be modified, once you add something its forever. Bugs in the contract are also possibilities.

Non-Maturity of Blockchain

There are a lot of different cons that are not yet thought about in the implementation of blockchain yet: Inefficiency & power consumption in world, Higher cost in its implementation in world and integration with older systems.

To Sum it up

  • Blockchains is a big list of records that is distributed among individuals on a blockchain network
  • Blockchains can eliminate fraud & make transactions a lot easier
  • Blockchains is currently not ready for implementation and has flaws that are not yet realized

Grade 11 Student at tks.world. Passionate and write about emerging tech.