There’s nothing new about peer to peer connectivity or the need for cyber security. Together, however, it’s a match. For long now Blockchain or block chain, has captured the public’s interests and created headlines. In all truth, technology has changed the way we comprehend and use money, forever. As Don Tapscott and Alex Tapscott quote in their book, ‘Blockchain Revolution’, “ To be sure, blockchain provides opportunities to stop the stampede to a surveillance society.” But is what is being termed as the ultimate tech, truly the digital answer to our prayers? Before we find out, let’s start with the basics.
Wikipedia defines it as ‘a growing list of records, called blocks, that are linked using cryptography and contain a cryptographic hash of the previous block, a timestamp and transaction data.’ These ‘blocks’ acts as a public transaction ledger that is authenticated by mass collaboration and offers bulletproof security. How? Well, because of its decentralized and direct nature, no block can be modified without tampering alll the sets of code. Russian programmer Vitalik Buterin puts it better- “Blockhchain puts Uber out of a job and lets the taxi driver work with the customer directly”. A blockchain can be private, public or a hybrid.
Good question. When it comes to blockchain, economists, marketers, investors, tech lovers and likewise share a rather polemic view. To call it a boon would be too much; to shun it as ineffectual, inaccurate. Either way, the tech is far from slowing down.
Supporters call it the fourth industrial revolution. Despite the fact that the blockchain technology is a new idea, it has managed to prove its worth and significance in a very short time period. As the blockchain is a decentralized online ledger, the government lacks the control or a power to meddle in any way and the scope of fraud is zero. Besides, blockchain offer transaction times that are 10 X faster than the usual bank ones. Also there is an improved financial stability owing to direct transfers and the lack of third party individuals.
But the system, like everything else has its downsides. It is complex and oft beyond the intellect of non-tech people. Blockchain has higher transaction costs, uses an excessive amount of energy (equivalent of Switzerland’s annual energy usage) during transactions and mining, lacks network security and is touted as inappropriate for many digital interactions. The biggest disadvantage though has to be its extremely volatile nature. A good example would be the Bitcoin price drop of $200 the day China decided to ban on companies from raising ICOs in 2017. Also, since the chain runs on trust there is always a scope for human error.
While many believe that it is soon going to burst like a bubble, blockchain technology is one of the most incredibly creative inventions that technology has ever seen.
