Blockchain And The Digital Economy Of The Future

Blockchain and the digital economy of the future

The digital economy over the years has had a boom thanks to new inventions and updates. Today many think that this will become the common economy, for this reason it is essential to be informed about the concept and applications of the same. Digital exchange media known as Bitcoin have even formed, which have had a worldwide giant impact. Base technology of this exchange is known as blockchain or block chain. Blockchain is the most transformative technology so far.

Blockchain is an ingenious invention of Satoshi Nakamoto, cryptographer and creator of Bitcoin, whose purpose is for digital information to be distributed, but not copied. This means that there is a network where each participant has full access to the database without any limitation. These participants are those who have the responsibility to decide the information that enters into the block chain. Since it is information that is part of the internet, it will not have the risk of being hacked generating confidence.

What really emphasizes this invention is that it does not have a central authority, which makes it a system that is totally democratic for those who use it. All information entered is extremely transparent, because everyone can see it. Making each participant responsible for their actions. This technology has modernized outdated processes. This was originally created for Bitcoin, but currently experts have found different uses.

In order to understand in depth the concept of the block chain is of the utmost importance to know the three main pillars of this technology, which are the following:

Decentralization plays a very important role. In the past there were only entities that were responsible for saving all the information, having to interact with them only. This led to a lot of distrust in them because it is much easier to be intervened by hackers, if something happens with the place where it is stored you have a great risk in losing it and you do not know if this entity is malicious since you can do what you want withyour information. An example that is good to take it into account for centralization are banks, since we have to go on them to do any process.

The second pillar is the undoubted transparency of what happens. In this case I mean that the identity of the person using it is hidden with complex cryptographies that are difficult to decipher. If your public address is used to see all your transactions clearly. This is a level of transparency that had not been experienced before in systems such as these.

The last pilar that is part of the blockchain is immutability. This means that what is admitted to the block chain is impossible to manipulate or change it. This is very valuable for financial institutions. What happens when something is changed is like an avalanche effect, it creates extremely large changes in the result.

Block chain technology has solved different problems that arose in the past, thanks to the different applications it has. Starting with transactions, previously the use of a third party was needed to perform them, but thanks to blockchain already this is not necessary. In addition, you will not have an additional cost for the transaction. The block chain allows us to track the history of any object to its source, allowing us. Another problem that eliminates is distrust of voting, since if this technology is used in this process there would be no doubt about the results obtained.

We also see how musicians or writers suffer when they see that the content they create is copied by another person losing profit and merits. This is resolved with blockchain since there are different projects that demonstrate the true creators of the content. Finally, it is important to mention as this invention can serve you when you have problems with your cloud information. Currently companies such as Dropbox and Google Drive take over this, but we should not trust an entity to keep all our information. Using cryptography, security in programs that use blockchain as a base has been reinforced.

Now that you have a broader idea in what this innovative technology consists of surely you will be wondering so that it is good. Well, as we have seen it serves enough things because it is the basis of the new commercial processes that are being carried out. Specifically, it can help us when creating smart contracts using a project like Ethereum that performs this process. It is responsible for developing the coding of contracts that happen when conditions merit it. As Ethereum there are many more that are responsible for creating new uses of this technology. Blockchain has the possibility to create a totally honest voting system when voting and make the information affordable to the public.

The impact that this invention has generated is quite significant. It is a fundamental part of various industries such as food, health sector, finance, real estate and many more.

Finally, in order to have a complete and balanced analysis I consider that it is wise to include the disadvantages that could arise when using blockchain. A great disadvantage is that an excessive amount is generated to be able to use it and this greatly affects our planet, another disadvantage is that blockchain tickets do not last forever. In addition to those mentioned, the slowness of the program compared to competition despite the fact that the number of participants is not so wide is very worrying and this means that the capacity is not so efficient and is not prepared for a greater number of people.

Technology through time progresses more and more, and this means that the same will happen with the block chain. New generations are very promising because later it can be used in new areas such as artificial intelligence, analytical, among others. This will present new risks to companies and industries that do not launch this type of technologies that transform different economic and social processes.

We can see that today we seek security between everything and more on the Internet and for this reason the block chain has been so successful, because it guarantees democracy before its users and no one has absolute power of everything. It will be extremely interesting to know the new applications of this technology later.

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