Blockchain Technology: Why Do We Use It?
Blockchains, as put in dictionary words, is “a system in which a record of transactions made in bitcoin or another cryptocurrency is maintained across several computers that are linked in a peer-to-peer network.” This technology ensures that documents can’t be lost, by giving copies to joining parties in the network. To prevent theft, or illegal manipulation, these copies can only be viewed or added to. Though some forms of technology can be unreliable or can’t be trusted, blockchain technology will only have a positive effect on the lives of the citizens around us. This will greatly improve the world we live in, through the improvement of the economy.
Blockchain technology was created to prevent the everyday problems found in bank transactions. Bank transactions used to be unprotected, which sparked many difficulties. The bank transactions between two parties, without a secure documentation system, could easily disappear; which is exactly what happens– quite a lot. Blockchains would record bank transaction information, and be linked between banks, in what’s called a “peer-to-peer” network. This information could be sent, and viewed, without being edited or deleted.
These bank transactions or any other personal information could also easily be tampered with or manipulated. Someone could get hold of bank account information, and steal money from innocent citizens, with very little effort. Blockchain technology was designed to protect this information, by cryptographically securing the information to eliminate the chance of it getting stolen or manipulated. Because of this technology, documents are now “tamper-proof” which protects people’s personal information, and thus protecting the people.
It sounds as if Blockchain technology is too official, and doesn’t allow additions to important documents. However, the only editing possible through blockchain technology is the addition to the original document. This means that additional information can be added, without the document being changed in any wrong, errored, or criminal way, and still is accessible with the other “peers” of the network. To go an extra step in security, there is no central administrator over the document, which means that any edits have to be agreed upon by all of the partners within the system; all parties in the blockchain must come to a consensus in order to edit the document.
Bank transaction information being safe and securely documented is evidence that Blockchain technology is a reliable system to prevent important information from being lost or criminally manipulated. This will positively change our lives because we won’t have to worry about any of our personal information being lost or stolen. This also changes the economy by more efficiently connecting two transaction parties, such as banks being linked using blockchain technology. Finally, with our lives being changed, within a changing economy, blockchains will change the world, by enabling thriving economies partner to form a better world. Blockchain technology shows that we can live without worry about our personal information being lost or stolen. This will make our economy strive.