The Future is in Blockchain Technology

The term “blockchain" has been in our lives for over 10 years. Even though it has a very complex structure, if I try to summarize it in its simplest form; blockchain is a system that keeps track of distributed data and provides encrypted transaction tracking. As the name suggests, "it is a technology that allows the data blocks to be stored, just like a chain, by connecting them to each other with encryption algorithms and distributing these data chains to many people". Blockchain was invented by Satoshi Nakamoto in 2008-2009. It is still unknown whether Satoshi Nakamoto is a person or a group. It disappeared after he invented the technology and shared it publicly. So, its presentation to humanity like its content has been quite interesting and enigmatic.

1- First of all, a data storage of course (I am not saying database, because the data saved in the system cannot be changed or deleted again)

2- Data replication process performed simultaneously in many different systems,

3- Peer-to-peer network topology used instead of hierarchical client-server models,

4- Using cryptography and digital signatures to prove identity, authenticity, and enforce read / write access rights,

5- Mechanisms that make it difficult to change historical records and make it easier to detect when someone tries to do so.

Blockchain can be public or private.

In the public blockchain model, the system is open to everyone, it is decentralized and does not have a single entity controlling the network. Data on a public blockchain is highly secure as it is not possible to change the data once it is verified on the blockchain. Bitcoin and Ethereum are well-known examples of the public model.

Private blockchain systems, on the other hand, operate based on access controls that restrict who can join the network. There are one or more organizations that control the network and only entities participating in a transaction will know about it while others cannot access it. Hyperledger Fabric of Linux Foundation is an example of a custom model.

In fact, the common theme in such blockchain platforms is that “trust” is completely based on computer science and especially cryptography, without being under the roof of an authority such as a bank or government. There is no doubt that blockchain startups will increase in the coming years. In addition to cryptocurrencies, many technology giants seem to adopt blockchain technologies for their data management.

In 2019, People's Bank of China announced that they will soon launch an independent digital yuan. Following these bold statements that made the potential of a global digital currency even more tangible, piloting began in Shenzhen on 9 October 2020. It is obvious that blockchain technology is used more in the financial sector or it is discussed more to encourage its use, but now other sectors have started to use this technology. The question now being discussed among top executives is being evolved from "Does blockchain technology work?" to the question, "How can we make blockchain technology work for us?".

Since the “internet” came into our lives in the early 1990s, we have witnessed how “Internet of Information” concept has changed our societies in the last two decades. Now, we have been discussing the concepts of "Internet of Trust" and "Internet of Value" created by Blockchain. I think this is one of the most exciting aspects of technology, it offers us new areas to constantly research and learn.

Sources:

1- https://satoshi.nakamotoinstitute.org/ 

2- https://blog.finartz.com/en-basit-tabirle-blockchain-nedir-nas%C4%B1l-%C3%A7al%C4%B1%C5%9F%C4%B1r-f9572b299c7b

3- https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Blockchain-Trends-2020-report.pdf

4- https://www2.deloitte.com/tr/en/pages/technology-media-and-telecommunications/articles/blockchain-revolutionary-change.htm

5- https://www.blockchain-council.org/blockchain/public-vs-private-blockchain-a-comprehensive-comparison/