Blockchain is a phenomenon that has been gaining momentum recently. Although many people know what it is and how it works by now, few have understood how big a role the distributed ledger could play in the future.
In fact, it is a system that is gradually taking over how we live, work and even socialise. Over the coming years, the gradual changes will be seen, but for those not well versed with the technology that dictate Blockchain, let us break down the concept for you.
Blockchain: explained
Blockchain technology is by definition a distributed/shared database of information similar to the contents of, let us say a book. Each line in this shared book is a so called “block”, filled with valuable information that can help make various automated processes secure, such as banking.
With a system where no third parties are involved, where there are no opening hours and which is totally decentralised, various areas of our lives will be totally transformed.
Here are some examples, but theoretically the possibilities are endless…
The way we carry out payments and money transfers
Money is what most people associate with blockchain, not least because of the cryptocurrency Bitcoin. At its heart is the ability to make payments over the internet directly between users, without the involvement of any third-party and completely anonymously.
Thanks to the blockchain technology, all transactions with cryptocurrencies are safe, anonymous and transparent, and are at the same time not controlled by a central issuer which means the currency cannot be influenced by political decisions.
The way we game
Not only is the blockchain technology used within various areas of the economy. It has also become important in the gaming industry. Gaming is a use case that drives true adoption of the blockchain technology by taking the incentive for the user from pure speculation to transactions on blockchain platforms.
In games, blockchain works together with so-called Non-Fungible Tokens (NFTs). NFTs are unique digital collectibles on the blockchain. This feature makes them suitable for use in games as representations such as figurines, consumables, weapons and other items that can be exchanged.
Curious to learn more about these non-fungible tokens? Read this NFT blog.
The way we identify ourselves
According to the United Nations (UN), over a billion people around the world lack legal identity. Thus, through initiatives like ID2020, powered by the blockchain technology and supported by Microsoft and Accenture, this could change completely.
Blockchain can enable the global digitisation of identity documents and identity. Countries such as Estonia has already adopted a digital identity thanks to the ground-breaking technology, and more countries are expected to follow.
Once identity is secured, blockchain can become hugely important in terms of secure documentation, certificates, contracts and the like without compromising privacy or security.
Concluding remarks
Although for many blockchain is still something that belongs to the faraway future, more and more people are starting to realise that we are now living in the future. Blockchain is already here and has shown how important it is for many sectors around the world. We have no doubt that the technology will drastically change the way we live our lives in the future.
