20 Apr BlockChain: a new technological revolution?
A Blockchain is a system that allows the certification of a certain “event” in a decentralized, secure and unchangeable manner.
Let’s look more closely at the concepts. There is no single entity that certifies a certain “event” such as a monetary transaction between two users; this task is designated to the entire network that participates in the blockchain (decentralized concept): all users whose PCs are connected to a blockchain make them available to verify the transaction, following the resolution of a mathematical algorithm that increases the difficulty every X number of resolutions, then certify the transaction and link it to the blockchain, thus creating an actual “chain of verification blocks” in which each block is encrypted (security concept) and each block certifies the previous one (unmodifiable concept).
A blockchain is much more complex than the explanation given above, yet in order to understand that the potential of a blockchain goes well beyond BitCoin and cryptocurrencies, I believe it is more important to understand the overall concept rather than its functioning in detail.
A blockchain is used and implemented in a multitude of processes and systems which nowadays are used daily. However, in the future, because of it, they will become obsolete, slow and insecure (many are already today).
Let’s look at some examples.
Let’s look at contracts and the sale and purchase of real estate. We could sell our home to a third party, signing the contract between the parties and certifying it on a blockchain. This would mean the signing takes place directly from home, without having to go to a notary, while maintaining the security of the contract’s validity and immutability. As a result, paying for the house with a cryptocurrency combined with a blockchain contract becomes a simple step.
Let’s look at a voting system. Everyone could vote directly from their home, with the certainty that their vote is neither manipulated nor modified, while avoiding the possibility that some ill-intentioned person could help a candidate by putting a few thousand false votes through the network. We could also add a donation to help the party, avoiding fund-raising activities for which there is no real visibility.
Let’s look at Agrifood. The production chain of a wine or a food product would be certified from beginning to end and perhaps even the payment of the good could be added. And what about all the bureaucracy necessary to get a good through customs? Through a blockchain this task would be carried out quickly; the good would be certified and it could be combined directly with customs duties.
Now we’re ready to answer the question I posed in my previous article: are the concepts of cryptocurrency and blockchain inseparable? The obvious answer is no; we can tackle hundreds of thousands of aspects with a blockchain, even without talking about cryptocurrencies.
And if we think of the examples above, there are quite a few points in favor of combining a cryptocurrency with any blockchain that’s created; after all, there’s no cryptocurrency without a Blockchain, but would a blockchain have been created without the concept of cryptocurrency? It’s somewhat similar to asking which came first, the egg or the chicken? We’ll never know.