Recently, I was speaking to some of my friends about Steemit and how it is based on the blockchain. One of them asked me it is the same as "that bitcoin thingy". That got me started on what the blockchain is, and how it is not the same as bitcoin. The more I spoke about it, the more people realized that they had got it wrong all along. This post is aimed at doing the exact same thing here on Steemit. I am sure that most people here know that Blockchain and bitcoin are different, so I will keep it short.
The earliest version of the blockchain was developed in 2008 for the bitcoin. Simple as that. Blockchain technology was made public in 2009.
Blockchain technology is entirely exclusive of bitcoin and is used by many other cryptocurrencies. (including the one we all love: Steem).
Blockchain technology has been applied to many other applications such as payment systems, governence tools, ledgering etc.
Blockchain 2.0 introduced in 2014 focused on creating a clear distinction between Bitcoin and Blockchain and define their roles clearly. To be precise, Blockchain is an infrastructure, and Bitcoin is an asset that stands on that infrastructure.
As with many new projects, Blockchain was panned by skeptics as being something that would never gain traction. Yet, here we are, just 10 years later, with Blockchain being the name on most people's lips.
A few examples where Blockchain has been a disruptor technology can be use of the blockchain by the Russian government to keep their security deposit secure.
The advantages of the blockchain technology
One of the biggest advantages of the blockchain is that it makes possible to share a database without the need for any one specific administrator. This makes disintermediation (By providing customers, partners, and employees with direct access to information, you can provide them with complete control to request and receive information) of data truly possible. This is a highly advantageous feature, since database is not under a central control, and tampering with it is nearly impossible.
The security of data is one aspect of the blockchain. The other aspect is the integrity of the data. Transactions cannot be altered nor erased.
The need for a third party involvement is removed completely. The rules for a transaction are decided by the user themselves.
Blockchain data is highly accurate, widely available and of consistently high quality.
The reliability of the network is very high as it is reliant on several nodes rather than one centralized server. Even if 90% of the nodes in the network are down, the others would still be functional and be able to verify and process transactions on the blockchain. This way, information stored on the blockchain is safe and intact. Even if several nodes are removed from the network, the data will still be available.
The unique strength of the blockchain is its openness. Anyone can see the changes made and nothing can be hidden.
Data added to the blockchain is permanent. It cannot be erased.
The blockchain has a large number of applications, from being used in healthcare, software security, cryptocurrencies, legal systems etc.
This has to be the favorite advantage of programmers everywhere; Blockchain source code is open-source.
This more or less captures all of the advantages of the blockchain technology. But what of the disadvantages? Come back for more in my next post!
Cheers!
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You can check out the first post in the Blockchain for Dummies series via the links below:
Check out some of my other travel stories and articles from my Steemit blog via the links below:
Solo backpacking trip across the UK - Exploring London
500km of cycling across the European Countryside
Follow my steepshot account @lifewithanr3
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