Blockchain was originally created as a decentralized ledger of Bitcoin transactions on the Bitcoin network. A decentralized or distributed database / notebook actually means that the storage devices in which the notebooks are located are not connected to a common processor. Blockchain contains a list of transactions growing through blocks. Each block is stamped with a time stamp and then connected to the previous block to be part of the block chain.
Before computers, people kept large numbers of copies in impregnable steel safes, buried treasure chests, or bank vaults to protect important documents. As an additional security precaution, you have translated each of these documents into a secret language that only you can understand. That way, even if someone manages to break into your bank account and steal your belongings, they won’t be able to understand your encrypted messages, and you’ll have a lot of backups elsewhere.
Blockchain puts this concept on steroids. Imagine that you and a million friends can make copies of all your documents, encrypt them with special software, and store them in each other’s digital bank tellers (computers) all over the Internet. This way, even if a hacker breaks, steals or destroys your computer, they will not be able to interpret your data, and your network of friends will still have a backup of your 999,999 files. This is a short block chain.
Private files encrypted with an encryption program can only be read by certain people, saved on normal computers, and connected to each other via a network or the Internet. Files are called notebooks – they record your information in a certain way. Computers are called nodes and blocks – individual computers that share power, storage space, and bandwidth. A network is called a chain – a series of blocks (names, blockchains) that allow computers to work together to share notebooks from each other.
The social impact of blockchain technology has already begun to materialize, and this may only be the tip of the iceberg. Cryptocurrencies have already raised doubts about financial services through the introduction of digital wallets, ATMs and the introduction of credit and payment systems. Given that there are more than 2 billion people in the world today who do not have a bank account, such a change is undoubtedly life-changing and can only be positive.
Perhaps the transition to cryptocurrencies will be easier for developing countries than the fiat money and credit card process. It’s kind of like the change that mobile countries are making with mobile phones. Getting mass cell phones was easier than creating a new infrastructure for landlines. Staying away from governments and losing control of people’s lives is likely to be accepted by many, and social impacts can be quite significant.
You just have to think about the identity thefts that have caused the news in recent years. Giving the management of the identity card to the people will prevent such incidents and allow people to disclose information reliably. In addition to giving access to banking services to the disabled, greater transparency can also increase the profile and effectiveness of charities operating in developing countries that are under the influence of corrupt or manipulative governments. Increased confidence in where the money goes and who benefits will undoubtedly lead to increased contributions and support for those in need in areas of the world in need. Strange and not in line with public opinion, the blockchain can build a financial system based on trust.
Going a step further, block storage technology is well placed to eliminate the possibility of sound falsification and all the other negatives associated with the existing process. Believe it or not, Blockchain can actually solve some of these problems. Of course, there are new obstacles and problems that will be encountered with a new technology, but the period continues, and these new problems will be solved with more complex solutions.
A decentralized book will provide all the necessary information to record the sounds anonymously and accurately and to verify their accuracy and whether there is any manipulation in the voting process. There will be no intimidation as voters can cast their ballots in the privacy of their homes.
In fact, it is not yet clear whether blockchain technology is part of everyday life. While exaggerated expectations increase the likelihood that central banks and the tasks we know today will come to an end, ending the centralized financial system is perhaps still a long way off. Time will tell how blockchain will develop, but something seems certain today. The status quo is no longer an option and needs to be changed.