If you dabble in the exchange of cryptocurrencies, you have likely heard of the technology behind it–the blockchain. But what is this technology, and what can it do?
Don and Alex Tapscott, authors of the book Blockchain Revolution, define the blockchain as “[…] an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” The blockchain is like a spreadsheet that is doubled thousands of times and is updated regularly by multiple computers. “The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.” This description might be vague to some readers, so here is a quick and informative video on how the blockchain works: https://www.youtube.com/watch?v=r43LhSUUGTQ.
Currently, the blockchain is used to log transactions for various cryptocurrencies, but what else can it be used for? Since it is a technology that is a database of agreements, it can be used for the following:
– A bank account alternative (particularly for people who live in impoverished areas of the world)
– Decentralized social media platforms (a current example being https://steemit.com/)
The examples above are only a few of the current and potential uses for blockchain technology. In a world that demands more control be placed in the hands of ‘the whole’, instead of a wealthy few, could blockchains be the answer to a more democratic society? Only the future of technology and politics will tell!
Regardless of the outcome, hopefully, this article has informed you and sparked your curiosity in an increasingly popular technology. Why not try it out for yourself? Log into your SolidTrust Pay account and do a cryptocurrency transaction today!