It’s high time you knew the power of blockchain

What’s Blockchain?

Where did Blockchain come from?

  • if one sends Bitcoin to the wrong wallet address, it is very difficult to reverse such a transaction, because of the lack of an intermediary person = one loses the money irretrievably,
  • it doesn’t exist in physical form = no coins, no bills,
  • Bitcoin miners must authorize the transaction, validate it, and record it in the ledger = adding a new block in Blockchain.

How is it possible that Bitcoin has any value at all?

  • Bitcoin is limited — there will only be about 21 million Bitcoins mined (one might think that 21 million is not a lot, but the last Bitcoin will be mined in 2140),
  • It is difficult to mine Bitcoins — the new Bitcoins are provided to Blockchain participants (people who have this database and check the validity of the transactions) as rewards for solving difficult mathematical tasks which is called proof of work.

Application of Blockchain

  • Finance — it is possible that one day the standard understanding of money will disappear and we will start using cryptocurrencies. Sounds abstract? Once cashless payment seemed like an abstraction and something that will not find followers at all too, but today we cannot imagine life without this type of payment. It is also increasingly common to pay with our phones. A significant advantage of such a turn of events would be also the fact that it is difficult to create inflation on something strictly limited — more money can be printed, and when it comes to Bitcoin — it’s impossible.
  • Digital property — Blockchain could maintain ownership of various digital assets. Today it is difficult to prove that the photo belongs to you if you upload it on some particular websites, such as chomikuj.pl.
  • Identity — this is what the Internet is based on. We protect it in many ways, e.g. with passwords, usernames, but it is not the safest way to store it. Imagine if our credit ratings, property titles, birth or marriage certificates were stored in a decentralized system in a secure and tamper-proof manner. This would eliminate various offices for sure but would reduce high-level costs.

Potential obstacles

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iteo

iteo is an international technology consultancy & software engineering company, founded in Poland. Visit us on www.iteo.com