Why is Blockchain required in our society?

Why is Blockchain required in our society?

Blockchain network

Howdy Friends, we are hearing about Blockchain technology very often nowadays and it is now interesting topic for almost all technologist due to sudden rise of Bitcoin price in 2017. So, let’s try to break this down with detail discussion in this Blockchain series.

Just to set the context, we will mostly focus on Blockchain as a technology and not only Crypto currency like Bitcoin. Of course, we will explain different scenarios where Blockchain technology can be applied similar to Crypto currency Usecase which is already in place e.g. Bitcoin, Ethereum etc.

We will start from scratch by explaining why Blockchain technology is needed and then we will dig into further detail about how it works, Crypto currencies, differences and RISKs and other probable Usecases. And of course, point of view of Success of Blockchain technology and other Cryptos.

Let’s begin…

Why is Blockchain technology required in our society?

In our real world, when we trade anything that has value e.g. diamond, gold, painting created by an artist, glossaries, any asset having financial value, requires trusting other party. WE, as a Buyer, try to verify the quality and integrity of the asset that we are getting from the seller.   Often, we trust the Buyer directly due to human nature of coexistence or special relationship. This is more informal way of doing transaction.

While in formal way, we take help from renowned centralized authority or third-party service provider e.g. Bank, Government, legal system, corporation or even physical Currency (Govt. approved) to settle the transaction for lowering uncertainty & RISK. We use more trusted middleman or platform to make the transaction happen smoothly. Nowadays, we are even using digital platform like Amazon, Flipkart, Alibaba for the same reason. This becomes more & more relevant for value exchange which happens across boundaries e.g. cities, states, countries etc.

Usually we pay a considerable amount as FEE to such central authorities. Still, despite of all the effort, we are cheated, there is fraud, hacking to the system so we lose money, value in our life and society. Transaction data get tampered by unauthorized way so real buyer and seller get impacted. Let’s think through below questions and try to answer

Will it NOT be better, if …

  • we don’t have to “TRUST” central authority for doing smooth financial transaction?
  • we can lower uncertainty of exchanging value between parties participating in transaction?
  • all the RISK of cheating, fraudulent, hacking etc. are implicitly covered by the system that is managing the transaction?
  • all the transactions are transparent to every participant?
  • Buyer & Seller can directly make the transaction without depending on trusted authority across any boundary?

BIG YES for all, right? It is really a surprise if any of your answer is NO 😊

Fortunately, all these requirements can be fulfilled using BLOCKCHAIN technology which is verifiable, tamper-proof, immutable and transparent by its characteristics. Blockchain can drive a fundamental shift in our economy and the way we exchange value and transact assets.

Internet has changed the way we exchange information across world and Blockchain is doing the same for transactions.

Most prominent Usecase of applying Blockchain technology has already been in place for financial transaction in the form of crypto currency e.g. Bitcoin, Ethereum, EOS, Cardano, IOTA etc.  (there are more than thousands now !!). This is acting like a catalyst towards Cashless society. Time will tell whether Crypto currency is a success or it requires improvements, but it has shown promise and Blockchain technology has caught our interest. That’s is the reason we are in this thread.

Cryptocurrency is just one Usecase or application of Blockchain and a tip of the iceberg when we see the opportunities of applying Blockchain technologies in our society. There might be many more Usecases and opportunities across various industries where Blockchain technology can be applied

Let’s try to summarize the major advantage of Crypto currencies so YOU can easily correlate similar advantages out of other possible Usecases across industries. Who knows that you may come up with a revolutionary idea for our society too!

Advantages of first Blockchain application Crypto Currency:

  • Anyone can directly transact with other participant within same Blockchain network/system. Any person in the wold can transfer crypto currency to anyone across country boundaries without involving central authority.
  • There is no central authority to allow or suspend your transaction or assets a.k.a. it is a Decentralized system. Your assets cannot be frozen or imposed arbitrary limitations.
  • All transactions are irreversible, and whole transaction history a.k.a. ledger is immutable. Existing records cannot be forged/changed and further transaction can only be appended in chronological way in the ledger. All the transaction history is available for audit which voids the chance of fraud.
  • The ledger in the Crypto Currency system can act as Single Source of TRUST.
  • Completely secured by cryptographic hash implementation. Probability of hacking the Blockchain technology is already proven ignorable and probably, it becomes gradually impossible after certain points as it grows big. This is already submitted in the very first Bitcoin whitepaper written by Satoshi Nakamoto.
  • In crypto world, there is no transaction fees to central authority that is usually charged by the central authority in current world transaction.
  • There is implicit TRUST. There is consensus among participants in Crypto/Blockchain network for new transaction to be included in the Blockchain ledger.
  • This lowers UNCERTAINTY. If you are a Buyer, you do not need to worry about background check of Seller of crypto currency. You have full transparency to the transaction history and report to verify.

So, friends, share your opinion in comment section why do you think there is evolution of Blockchain technology and why it is required in our Society? There are many more Usecases where Blockchain technology can be applied, few examples ..

Probable Blockchain Usecases:

  • Single Blockchian profile of a Person without having multiple profiles in various social platform. The profile owner selectively permits different attribute access to required authorities.
  • Any asset e.g. Diamond can be tracked from it’s source of generation throughout its lifecycle of ownership propagation.
  • Building a world supporting “Everything As A Service” on Blockchain platform without worrying about what is consumed how much, rather people will only pay what they consume by avoiding any time based paying plan. For example, there will not be any yearly, monthly pricing plan for mobile, WIFI, electricity consumption.
  • Procurement of any asset e.g. mobile, laptop from current digital platform has a bit of uncertainty whether you will be getting the right product or not , whether the product is coming from authentic source, what is the review or feedback of the products/seller etc. Blockchain can support to reduce all these UNCETAINITY.
  • For any eCommerce agreement, we can introduce Smart Contract which can ensure a predefined set of activities for a specific transaction and make sure every steps successfully completed without any deviation.
  • In short, Blockchain can be applied any kind of micro transaction where TRUST is a factor between negotiation parties.
  • Many more to be discovered ……

In our upcoming articles, we will discuss about How Blockchain technology really works explaining example of Bitcoin, Ethereum, EOS, Cadano , IOTA  currencies. Also, we will discuss how they are different from each other or if there is hidden/technological RISKs or weakness. We will also address other probable Usecases. And of course, point of view of Success of Blockchain technology and other Cryptos.

Please comment below and let us know if you like the article, also if you have any questions that require our attention. We will try our level best to address all of your queries. I am a Technology Evangelist and Programmer too, I would love to answer all of your technical questions.

Cheers guys , keep visiting this site to be up to date about latest technological trends.

Author: Dhrubo

I am passionate about sharing Knowledge , Information and wisdom what ever way is possible. This is small contribution to our society from my part. I am a Programmer and love to architect and modernize IT infrastructure / solution / applications for my clients.

I am sharing my experience what I have gained so far via CTT and will keep doing so in regular basis. This is the whole purpose of founding this Knowledge Center for Cloud Technologies.

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