`What the heck is blockchain?
Samuel Oluwasegun Williams
Full Stack Digital Marketer |Paid Ads Specialist| Growth Marketer
During the last decade, blockchain technology has grown significantly. It is obvious that blockchain technology will continue to grow for some time to come. Blockchain has found applications in many sectors, including arts, healthcare, and finance, and it seems that this is just the tip of the iceberg in terms of how many applications it might have in the future.
According?builtin.com?blockchain can be simply defined as a decentralized, distributed ledger that records the provenance of a digital asset. In this article we will take a look at what blockchain is and how it works, Its history, the different forms and what the future looks like.
HOW IT WORKS
Blockchain is a decentralized database where every document is distributed to all computers at the same time, so a trusted third party is not required. The decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT).
Blockchains consist of chunks of data called blocks. New data is entered into a new block as it arrives. An unique 32-bit number called a nonce is generated once the block is filled with data, which generates a 256-bit number called a hash. It is then chained onto the previous block, which makes the data chained together in chronological order.
WHAT ARE ITS APPLICATIONS?
Here are some applications of blockchain
Cryptocurrency
The most popular applications of blockchain technology are in cryptocurrencies. In contrast to the traditional financial system where the currency is controlled by one central body, the currency is subject to the whims of the country’s economy, and the user’s data is at the mercy of the central authority.
The decentralized nature of blockchain enables transactions to be carried out without the need for a central authority, thereby eliminating various transaction fees. In addition, crypto currencies remove the monopoly on user and transaction data, thereby improving transparency and fairness.
Since the launch of bitcoin in 2009 there have been over 6000 cryptocurrencies (according to?builtin.com) with a total market cap of about 2.05 trillion dollars as of January 2022, Bitcoin having 815 billion dollars of the share.
Healthcare
Blockchain technology is helping improve efficiency in the healthcare sector by providing safer medical records. The medical data is incorporated into a blockchain which gives patients assurance that their information is secure, encrypted, and accessible via a private key.
Making it possible to avoid countless mistakes in healthcare by preventing miscommunication between different healthcare providers involved in caring for the same patient. This simplifies diagnosis and interventions, and allows care to be tailored to the patient’s needs.
Countries like Estonia have introduced blockchain in their healthcare system.
Elections
Many countries, both developed and developing, are affected by election fraud. Stolen ballot boxes, tampered vote counts and even defective voting machines have been reported. These indicate that the current voting system is vulnerable.
A blockchain-based system would make tampering with votes virtually impossible. By using the blockchain protocol, the electoral process would also be transparent, reducing the number of workers required to conduct an election, as well as providing officials with nearly instant results.. In this way, it would be unlikely that fraud could threaten the election or call for any recounts.
Entertainment and Music
Blockchain technology is currently making its way into the music and entertainment industry, where ownership, royalties, and rights management have always been a problem.
By using blockchain, it would be easier to track intellectual property, and digital rights management companies would have access to the full record of transactions. Royalties and profits can be paid timely and effectively to creators and other stakeholders with blockchain technology. There are a couple of companies who are taking advantage of the blockchain opportunities.one example is Mediachain
Mediachain is a New York based company that uses a peer-to-peer, blockchain database for sharing information across different applications, it offers attribution, analytics and value to flow directly to the author. It was acquired by Spotify in 2017.
THE TIMELINE OF BLOCKCHAIN
We can’t overstate blockchain’s influence today, its ripple effect can be seen across a wide range of industries, from finance to healthcare to entertainment. However Blockchain technology has be around for over two decades, let take a look at the journey of the blockchain technology
1979
1989
1991–1992
2004
2008–2009
2010
2013
2014–2020
THE FUTURE OF BLOCKCHAIN
Even though blockchain technology is not without uncertainties just like any other technology, its current path looks promising. Blockchain technology is finding its way into more and more industries.
According to MVP 60% of CIOs across sectors are on the verge of integrating blockchain into their infrastructure, the Nigerian government launched its cryptocurrency “E-Naira” and according to (Statista) The global spending on blockchain will be about $6.6 billion by the end of 2021. These are indicators that there is a lot in store for blockchain technology.