Automation has become one of the most integral part of our lives today. Do you remember the days when you had to cram down those long 10-digit phone numbers to dial to people? Well, we’ve come a long way since then, where all of our contacts are stored in our phones, and we are just one click away from our desired contacts! It would be no injustice if we say evolution of data-science is the best creation of the 21st century. It has almost affected every aspect of our lives making things a lot easier and convenient for us!
Indeed, over time as technology has evolved, so has our methods of storing data. On that note, blockchain is currently the most revolutionary and innovative technology in this field. In simple terms, blockchain involves storing user’s data over a network of highly secured computers without any single one owning it completely. What makes it special is the high-end security, that keeps the data untouched and immutable for generations!
Blockchain is much intertwined with cryptocurrencies, and in the near future with mass adoption blockchain/cryptocurrency it will bring a revolution in our monetary systems for good! Is this even possible? To start with it, let’s take an example from our daily lives.
So, do you remember when was the last time you made a purchase from Amazon? Did you notice, you might have started seeing ads saying, “You might like”? This all is the basic essence of the problem. Today all of these companies use artificial intelligence technology to study our data and use it for persuading us to generate more sales for them. So many of you may ask, “What’s the problem with it, and is there any way I can fix it? Well, the following discussion will give you the most accurate answer to it; so, let’s dive in!
The Need of Blockchain and It’s Basic Mechanism
These companies use your data to analyze your shopping pattern and to predict what product you might like. “What product they can advertise in a way to nudge you into an impulsive buy.” Here, the most notable thing is the need of that product was not initially there, but it has been created artificially through analyzing your data. Companies have been using these cunning techniques to make you spend your money and to increase their sales!
Well, blockchain technologies put an end to all of this by eliminating the need of these vendors to store your data, who use your data unethically. It would not be wrong to state that blockchain brings democracy to the data storage arena, making the process completely transparent. The simplest explanation of the blockchain mechanism is, you can imagine it as a chain of blocks where the user saves his data securely inside a block and this data is verified by a cluster of highly secured computers, this verified data is then attached to a chain.
This chain provides a direct transaction between the service provider and the user which increases the overall transparency of the process. This makes the overall process more efficient, and cheaper by eliminating the middlemen who mediate the data transfer process.
Working Mechanism of Blockchain
With blockchain technology, the data is hosted on a million of computers together as a network. This promotes decentralization and transparency. Using these highly secured peer-to-peer network the blocks of data are chained together to facilitate direct client-server interaction.
When the user inputs the data through a computer, then the data is secured in blocks using hashes and thereon divides the task related to it in related relevant networks. This promotes collective ownership of the data between the blocks in the network keeping it highly secured.
Why is Blockchain Technology the future?
Reference for further section: https://www.gartner.com/en/webinars/3858509/blockchain-special-report-what-to-expect-in-2018
Statistics and data are the best tool when talking about topics of extreme importance. So, let’s take a look at some of the data pieces to understand it better, “Why the economists and experts claim that the future belongs to blockchain?”
- By 2025, 50% of the people who use a smartphone but don’t have access to traditional banking accounts, would have access to cryptocurrency accounts.
- By 2023, 25% of the news and video content available over the internet would be authenticated as “real” using blockchain technologies.
- By 2022, the cryptocurrency exchanges through multi-party computation for signoff and private key protection would see a phenomenal increase from 1% to 50% making them more transparent and secure.
From governance to the supply chains, to the stock trading market, blockchain would be intervening in all of them in the near future for making things more transparent and decentralized. According to Gartner, by 2023 blockchain platforms would be easy to use and would be readily used for achieving the objective of secure private transactions between users.
What to Expect in the Future?
Blockchain Technology provides you with a wide spectrum of benefits, not only limiting them to the increased transparency and decentralization. They also provide a variety of other associated benefits like making your data immutable, making the transactions less costly and saving our precious time. It would not be too optimistic if we claim, “Blockchain is most likely the pioneer to a whole new way of economic transactions, contributing immensely to global development.”
In the future we can expect blockchain technology to evolve and develop providing further pros like:
- Easy to use: We can expect the blockchain technology to evolve itself in a way to be more easily accessible so that more and more people can benefit from it and understand it properly.
- Supporting private transactions readily and securely: Blockchain technology is a technology for the future, because data-privacy is the top-most priority of enterprises nowadays. Blockchain is expected to provide a safer gateway for private transactions in the future making data-privacy a reality for such enterprises.
- Scale and to interoperate: A technology cannot claim to be a success until it has been accepted by a large section of users. Soon we can expect blockchain to make itself readily accessible and scale to a large part of the global population.
- Provide the confidentiality that enterprises require: Businesses run on secrets, and secrets are meant to be kept. But this statement is a hard to achieve goal in today’s time, where we see data leaks in even the biggest of the tech giants every now and then. However, Blockchain is expected to bring a revolution in this arena, making data privacy a reality in the future, where your data is only yours.
The days are still to come when we will see seamless blockchain applications and cross-functionality of cryptocurrency, but already there are numerous positive developments on this taking place all over the world. According to the recent market predictions, by 2022 Tech-giants like Facebook, Uber, PayPal, eBay, Airbnb and other ecommerce platforms will be providing support enabled mobile cryptocurrency wallet services to a large part of this world. This would be the first step towards the large-scale use of blockchain in the future.
Finally, at the end of this discussion, what we can conclude is, “Data would be the most important element in the future, and one who owns the data is the king. So, to prevent misuse of your data and to ensure your data privacy in your businesses and in daily life interactions blockchain is the most relevant technology in the current situation. Not only does it provide you with data privacy but secures you from any possible threat that could have been triggered via the misuse of your data.”