Blockchain Technology

March 4, 2019

An Article Written by Trainee Njoud Alotaib From King Saud University about Blockchain Technology.

Blockchain Technology

 

 

1- Smart contracts:

Distributed ledgers enable the coding of simple contracts that will execute when specified conditions are met.

 

2- The sharing economy:

By enabling peer-to-peer payments, the blockchain opens the door to direct interaction between parties - a truly decentralized sharing economy results.

 

3- Crowdfunding:

Blockchains take this interest to the next level, potentially creating crowd-sourced venture capital funds.

 

4- Governance:

Ethereum-based smart contracts help to automate the process.

5 Supply chain auditing that corresponds to a product number.

 

6- File storage:

Decentralizing file storage on the internet brings clear benefits. Distributing data throughout the network protects files from getting hacked or lost.

Inter Planetary File System (IPFS) makes it easy to conceptualize how a distributed web might operate.

 

7- Prediction markets:

Create a market based on a predicted outcome and collect half of all transaction fees the market generates.

 

8- Protection of intellectual property:

Digital information can be infinitely reproduced and distributed widely thanks to the internet.

 

9- Internet of Things (IoT):

The result increases system efficiency and improves cost monitoring.

 

10- Neighbourhood Microgrids:

Blockchain technology enables the buying and selling.

 

11- Identity management:

The ability to verify your identity is the lynchpin of financial transactions that happen online.

 

 

The reason why the blockchain has gained so much admiration is that:

  • It is not owned by a single entity, hence it is decentralized.

  • The data is cryptographically stored inside.

  • The blockchain is immutable, so no one can tamper with the data that is inside the blockchain.

  • The blockchain is transparent so one can track the data if they want to.

Firstly, because they are centralized, all the data is stored in one spot. This makes them easy target spots for potential hackers.

If the centralized system were to go through a software upgrade, it would halt the entire system.

 

What if the centralized entity somehow shut down for whatever reason?

That way nobody will be able to access the information that it possesses Worst case scenario, what if this entity gets corrupted and malicious? If that happens then all the data that is inside the blockchain will be compromised.

 

 

Conclusions:

One of the most interesting and misunderstood concepts in the blockchain technology is “transparency.”

 

 

 

 

Reference:

https://captainaltcoin.com/what-is-blockchain/

https://blockgeeks.com/guides/what-is-blockchain-technology/

https://www.ivedix.com/the-enormous-potential-of-blockchain-technology/

 

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