Future of Blockchain

Blockchain is one of the hottest technological topics on how to use the block chain concept to work with both large banks and thousands of startups. Blockchain is commonly associated with the cryopreserved bitcoin. Thanks to it, it was the first time in practice to test the effectiveness of an idea that has its roots in concepts developed by cryptography specialists since the 1970s. Regardless of how effective bitcoin is evaluated as a payment tool and a specific type of money, say that the underlying transaction register has passed the exam – it ensures the safe functioning of the scheme, which is without the entity acting as the clearing center.

The Bitcoin Blockchain is a transaction log that records the assignment of cryptanalysts to individual addresses (user accounts, “wallets”), issuing them, generating new units, and transaction fees. The basic registry unit is the so-called. block. It contains a set of transaction data executed since the previous block was generated. It can be imagined as a “portion” of data. Each block contains a unique hash. This tag is calculated based on all transactions that have entered the block, as well as the tag of the previous block in history. This creates a chain – each block refers to its predecessor.

As usual, a new technology with revolutionary potential raises extreme reactions. Enthusiasts see possible applications in almost every kind of human activity. To put it bluntly, blockchain would handle both the problem of drinking water shortage in Africa and cybercrime, and the decentralization of access to information would completely change the modern society. Skeptics point out that the chain of blocks is little more than just a new way of mapping data, in many cases less effective than existing solutions. In addition, it requires the right environment – the blockchain itself will not deprive the work of notaries or realtors, just as bitcoin did not make the central banks disappear from the surface.

One can argue that one and the other are right. Today’s blockchain-based schemes are just the beginning – they can be compared with the first databases of the 1960s. If the history of the block chain’s predecessor would be repeated, then the rapid development of further refined DLT variants and accompanying tools awaits us. For now we are witnessing the stage of experiments, which will probably emerge at least some promising new ideas.