Why will we need more secure and faster transactions in the future? Why is blockchain technology important to us?
To answer this question, it is sufficient to look at a very short history of our world. Looking back only a century, not much will reveal our position clearly.
A century ago communication was quite inadequate and limited compared to today. They had no cell phones. Print media technology was poor and distribution took time. It took days and sometimes weeks for you to become aware of an action happening somewhere in the world.
Benefiting from banking activities and other financial transactions were very expensive and over long periods of time. Still, if you do not live in a city large enough to open a bank branch for such activities; you did not have such a chance.
Since energy resources are limited, cities can be illuminated in a limited way. The vast majority of towns and villages were sunk into darkness at night. Electricity generation was insufficient due to the use of only carbon-based energy sources. The internet, which we cannot imagine being absent in our lives today, did not exist yet. It is a sad truth that nobody knew about smartphones. Nobody even had any idea of how smartphones could be.
Cities were growing steadily due to the need for security and the desire to participate in economic activities. With the growth of cities, problems such as energy, transportation, and construction that awaited solutions also grew. Therefore, technological inventions and advanced engineering solutions were required to solve the problems that arose. Now that we can look back, we have achieved these.
In the fields of storing and transmitting data, it may explain the situation as follows: The ancestors of our today's computers were enormous. (The US military computer ENIAC was 167 m2 and weighed 50 tons) Despite their enormous size, they had thousands of times less processing volume and speed than today's fingernail-sized computer chips.
All these shortcomings and limitations have been overcome with technological development. However, it is certain that we will need dozens of times the data and information transfer in the future. The increasing capacity of smartphones and computers we use confirms this need. Security, scaling, and speed problems produced by the technological structure that has been carried to today can be solved with a more advanced technological infrastructure. This technological infrastructure is blockchain technology.
Blockchain is a distributed, decentralized data recording system that provides encrypted transaction tracking. Blockchain technology was invented with Bitcoin in an article published in 2008 by a cryptologist (person or group) named Nakamoto Satoshi and made public. Bitcoin is designed for a peer-to-peer electronic payment system.
Why are blockchain applications needed in the financial field? Why does Avalanche focus on the financial blockchain?
Human civilization has reached the present day through various stages. In the first industrial revolution known as Industry 1.0, mechanical production systems where water and steam power were used, and mass production with the help of electrical power was experienced in the second. In the third industrial revolution, production was automated with the use of electronics and the development of information technologies. With the 4th industrial revolution, the production phase based on cyber-physical systems (internet of things and internet of services) was entered. Modular smart factories have become possible to monitor physical transactions in cyber-physical ways due to the widespread use of automation systems.
This rapid development in the industry has brought along negative side effects. Damages and grievances caused by theft and misuse of personal data have become an important problem. On the other hand, security gaps in central systems also leave an open door for the misuse of personal data of individuals.
One of the important solutions to such problems is tokenization. Tokenization is the process of replacing an important and sensitive piece of data with an insensitive equivalent. New non-sensitive data currently used in place of sensitive data are "tokens". A token is usually a random or algorithmically generated numeric code.
On the other hand, we are becoming digitalized due to industrial development and changing business models. Accessible information and existing resources (files, documents) can be transferred to digital media in a way that can be read by a computer. Emin Gun Sirer, one of the founders of Avalanche, states, "I have no doubt that all money will be transferred to digital money in the next 10 years." This situation is very important in terms of emphasizing that there will be big changes in the financial field. Therefore, Avalanche believes that transferring financial transactions on the blockchain network will become a necessity in the future. Because traditional systems are far from solving problems with their existing technologies. More permanent and reliable solutions can only be provided with blockchain technology.
The Avalanche project, built on the blockchain network, is an open-source platform created to establish decentralized applications and blockchains that can work with new financial projects. In the financial field, it can provide:
• Helps democratize financial markets. It creates an ecosystem that all blockchain platforms can work together.
• Allows project owners to create their own blockchains. It enables to digitize all assets with arbitrary complex rule sets.
• Allows us to create scalable smart contracts.
• It enables us to create and exchange digital assets in the best way possible.
• With Avalanche, you can build blockchains suitable for your needs. Create your own virtual machine and how your blockchain needs to work; you make it work that way.
To summarize, the Avalanche project is designed according to future needs. Financial transactions, notarial services, futures transactions to be made with smart contracts, all transactions related to borrowing or payment, and more can be carried out on the Avalanche platform. Moreover, these operations can be performed in a high performance, scalable, flexible, and secure manner.
Useful Links
Web: https://www.avalabs.org/
Linkedin: https://www.linkedin.com/company/avalancheavax/
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Document: https://docs.avax.network/
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simonx