Blockchain technology has revolutionized the way we store and exchange data, offering a level of security and transparency never seen before. This technology, first introduced with Bitcoin in 2009, is now the foundation of thousands of cryptocurrencies and finds application in a range of sectors, from financial services to healthcare, from real estate to supply chain. But what makes blockchain so revolutionary? Let’s discover together 5 very interesting facts about blockchain technology.
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It is tamper-proof
Once an entry has been added to the blockchain, it will be almost impossible to remove or alter it later. If you want to alter an entry, you would basically have to alter all the transactions that came after it. Doing this is mathematically impossible, so even genius scammers should look elsewhere to steal bitcoin without too much effort. Being tamper-proof is also why bitcoin payments are final and irreversible.
Examples
- Once entered, data in a blockchain are nearly impossible to change or delete, thanks to a permanent and incorruptible digital ledger.
- In the case of bitcoin, to alter a transaction, a hacker would have to simultaneously alter the affected block and all subsequent blocks on at least 51 percent of all nodes in the bitcoin network, a nearly impossible feat given the enormous computing power required.
It is 100% transparent
Anyone with access to the blockchain can see all transactions that have occurred in the past. One can also look at the first block (block 0) that was mined by Bitcoin founder Satoshi Nakamoto in 2009. This genesis block contained the message “The Times 03/Jan/2009 Chancellor on brink of second bank bailout.”
Examples
- All transactions on a blockchain are visible to anyone participating in the network. For example, in Bitcoin, every transaction made is public.
- Companies are beginning to use the blockchain to track the origin of their products, allowing consumers to verify the origin of a product, providing transparency and authenticity.
Criminals cannot hide behind blockchain
If criminals think they can hide behind the relative anonymity that Bitcoin provides, they are sorely mistaken. Many have tried to circumvent the long arm of the law by converting their illicit loot into bitcoin and transferring it to different wallets, but with the transparent nature of the blockchain, computer experts can identify and track all the bitcoin transactions these criminals have made.
Examples
- Although blockchain transactions may appear anonymous, every transaction is permanently tracked and recorded, making it difficult for criminals to hide.
- Law enforcement agencies have already used this information to track criminals. For example, the FBI shut down the Silk Road site and arrested its founder, in part using information from Bitcoin’s blockchain.
Blockchain is not limited to cryptocurrencies
Many different startups have begun experimenting with implementing blockchain technology in various sectors. One such example is Ethereum with its smart contract technology that basically runs on blockchain. Because the blockchain is decentralized, two parties can make transactions with each other without needing the services of an intermediary. This not only saves money, but also saves a lot of time and conflict.
Examples
- In addition to cryptocurrencies, blockchain technology is finding applications in various fields. In the medical field, for example, blockchain is being developed to securely manage and share patient health records.
- In real estate, blockchain can simplify the process of selling and buying real estate, reducing the need for middlemen and increasing transparency.
Blockchain can still be improved
While this technology has certainly improved the lives of many people, it can still be improved. For example, as time goes on, blockchain will become several hundred gigabytes of data. This will cause a lot of bandwidth and storage problems on personal computers. Hopefully, the brightest minds in the crypto space can find a solution to this problem soon.
Examples
- Despite its many advantages, blockchain technology has some challenges, such as the high energy required to operate blockchain networks and the difficulty in updating blockchain protocols.
- Developers are working to solve these problems. For example, Ethereum is implementing an update called Ethereum 2.0 that aims to solve these problems and improve network efficiency.
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