The digital age has evolved in such way giving huge steps, suggesting a real technological challenge in the recent years. We are facing a technological change that will transform not just the way to connect between countries but companies in the way of exchanging the information they produce. This new technology has the power to change our relation with the digital world forever, we are facing the ability of a device that can connect without the need of a computer, this is, in an autonomous way. There are millions of digital assets in the world, like music, money, property registers, houses, notaries, etc. And now we talk about Blockchain, the base of a new worldwide welfare that will reinvent organizations, ecosystems and economies of all countries.
This new technological revolution has given place to a new concept of Blockchain (a shared database) that works as a book for the recording of trading transactions or any other exchange that you want to perform. The basis of this information consists of a group of notes that are in an online shared database, which are registered by codes, quantities, dates, participants and operations, all under cryptographic keys and distributed by many “computers or people,” which constitutes security against manipulation and fraud.
What is Blockchain and its importance
Blockchain is presented as a set of technologies that is transmitted and stored, making it possible for computers and other devices to resolve and share a decentralized and synchronized register between them, instead of using traditional methods. This information is stored safely, respecting the identity and privacy of the person or computer. Thanks to the use of cryptographic keys it does not allow its alteration, being visible to anyone on the network, no one can impose rules, it’s self-regulated, immutable and nobody has been able to hack it ever since it was created.
Blockchain’s effect on the financial industry is huge and its advantages are being tapped. The best example is the banking consortium that groups the world’s top banks, which announced last December that they will invest up to $59 billion to boost initiatives in Blockchain. It’s the technology behind Bitcoin that has become an example to follow of a large sector, starting a myriad of business models.
Blockchain, how was it born and how does it work?
This chain of blocks was announced in 2009 with the invention of the digital currency Bitcoin. Blockchain is an integral part of it; it’s a system that has several applications in different disciplines. It’s composed by different computers that solve complex mathematical operations, requiring great computer and electricity power; as it has already been said, it’s a big digital book collaboratively shared between many parts.
Blockchain can be updated with the general consensus of those who use it and only when it is necessary and once the information is updated it cannot be erased; this means that when a record is changed in a computer it is automatically synchronized in the other pairs, in case that a node (computer connected to the network that uses a software to store and distribute an updated copy in real time of the chain of blocks) disappears of the chain from the network for some reason it would not be affected at all. This is the chain of blocks that make up Bitcoin, containing a safe and effective registry.
As we said, it was born with the revolution of Bitcoin, since it is the technology or codification system of the information that is behind the virtual currency and that sustains its entire structure. Its potential was quickly noticed and the many applications that could allow its use beyond financial transactions because of its sophisticated data coding and for being extremely safe. In addition to all these advantages, it doesn’t need a centralized intermediary to identify and certify the information; all this in itself makes it very liked and makes it a new revolution.
Blockchain revolutionizing the future
This technological platform that supports Bitcoin is revolutionizing the internet world, due to the need for reliable and secure chains, giving way to new business opportunities, not only in the financial world, but also in sectors such as energy companies, telecommunications, public administration, logistics, transportation, media and many more.
Blockchain ensures credibility and confidence in technology, whereby a large part of the world’s population that does not have access to banks and transaction systems is expected to be able to exchange securities and assets without relying on an intermediary, leading to a deep societal transformation. As a result, the World Economic Forum states that almost 80% of banks are working on Blockchain projects to generate a change in multi-currency cash systems, applying it in all their international transactions. According to Tokyo banks, a smart contract prototype for their business transactions has been developed, just like China’s UnionPay for its exchange programs with other banks.
Blockchain and big companies
Performing transactions in the industry will undergo a revolution in its form with Blockchain: IBM is developing apps based on Blockchain, focused on incorporating solutions of diverse industries and systems. IBM expects, according to its data, that Blockchain’s global supply chain generates USD$100 billion in annual efficiency specifically in business. It has integrated a number of companies that through Hyper Ledger Project are enthusiastic to be part of Blockchain.
We realize and don’t question that Blockchain has revolutionized the technological world and has become a powerful platform, which grows uncontrollably and is only the beginning of this new technology.