Blockchain: The Next Disruptive Technology?

The Blockchain Might Be The Next Disruptive Technology

To process a transaction, you need first to make sure the sender owns the asset he wants to transfer, and make sure he will not trade it twice. In the blockchain, information is stored in blocks that record all transactions ever done through the network. Hence, it allows validating both the existence of assets to be traded and ownership. To avoid double spending, the technology requests several nodes to agree on a transaction to process it. A validation is also artificially difficult to achieve: miners leverage computer power to solve complex cryptographic problems (the proof-of-work). Every time a problem is cracked, a block is added to the chain, and all the transactions it includes are thus validated. The updated chain, including the new block, is shared with other nodes and becomes the new reference; this process leverages cryptography to prevent duplicate transactions. New blocks issued are also linked to previous ones, so that it is almost impossible to go back on a transaction. This technology addresses all the issues to validate a transaction, so that processing one doesn’t request a third-party any more: the network replaces institutions. Now, transferring assets through the blockchain is done almost in real time as it takes around 10 minutes to add a new block to the ledger. The complexity of the math problem to solve is increasing with time and computer power. And it is cheaper than ever as miners get rewarded at around 0.0001 Bitcoin (BTC) every time they process a transaction. This is a game changer. Beyond Bitcoin, Several Use Cases Are Explored Of course, Bitcoin was the first use case of the blockchain, and the most famous one. Its founder developed this technology to process money transfers and to solve many cryptocurrency issues. Instead of […]