How Is Blockchain Changing the World? Application, pros, and cons of blockchain

Any company, whether it is a 20Bet sports betting site, a small home business, or a huge entertainment company, is looking to reduce the paperwork and the number of middlemen – blockchain can be the answer to these problems.

What is this technology famous for and why spend money on it, let’s figure it out together.

Blockchain Technology Application

The peculiarities of the blockchain are such that it does not need an intermediary to authenticate the records. For example, when you buy a piece of land, in addition to financial transactions, you also need documentary evidence of your right to your property. This is done by a notary – an intermediary who will draw up the documents, with his signature he will approve your right and enter it into a single register.

Another example: you buy expensive drugs from a well-known brand, but there are also fakes on the market. You will use markers to identify them. But if the authenticity of this product is implemented in the blockchain, then you will not need to verify your product. With the help of blockchain, all suppliers can reliably and autonomously identify their products (processing can combine products from different manufacturers), and sellers’ networks can tell consumers exactly where and what product was delivered from and who the manufacturer is.

Blockchain technology is replacing an army of people in government agencies involved in document verification. Blockchain will replace the concept of digital signature: it will remove fake websites, virus programs, fake news, online piracy. The blockchain is capable of confirming the authorship of the material.

World-class states and corporations are already introducing blockchain technology into their structure and activities.

Do You Think Blockchain Can Improve the World?

Blockchain Pros

  • Network participants are equal to each other and can transfer data directly
  • There is no possibility of data substitution and hacker attacks since special encrypted keys are used
  • You can check the traversed path for any transaction since any block is available for public viewing
  • Blockchain can be applied in various fields (financial sector, law, real estate, etc.)

Blockchain Cons

  • The complexity of scalability. If the Bitcoin blockchain accounted for the share of Visa transactions, then its size would reach hundreds of terabytes
  • The possibility of fraudulent activities. Blockchain data transfer is irreversible. In this regard, there is no possibility of canceling the operation, even if it was carried out by mistake.
  • 51% attack. If 51% of the computing power belongs to one device, then the integrity will be violated

Blockchain and Bitcoin

Blockchain technology is well established on bitcoins, a popular and expensive cryptocurrency. Using her example, it was shown how to organize a mass calculation of a hash (now a generally recognized measure of the integrity of an electronic unit). The creator of the first block only needs to create a unique formula and calculate the “parent” based on it.

In Bitcoins, the following rules apply, which are typical for the blockchain in general:

  • Each hash is unique; when calculating the next transaction, another is created, which is not related by value to the previous one (you cannot pick up the second one at a time).
  • It is impossible to restore the original number from the hash, this excludes brute-force hacking (Brute force is useless here).
  • The frequency of the appearance of a new hash is laid down at the level of the formula; only the creator of a specific system can change it.
  • The block database is public and at the same time completely protected from hacking.
  • Calculations are carried out by users on a home computer or using special equipment.
  • A minor drawback of the existing Bitcoin system is the visibility of all transactions. Each owner of this cryptocurrency wallet sees how much is transferred and where. But it is impossible to find out who the owner of a particular wallet is; complete anonymity remains.

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