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Stringed and Decentralized: Understanding Blockchain and the Internet of Things

Blockchain mechanism

Present-day technology enables us to be in contact with one another directly. Be it telephone calls, emailing, instant messaging, or sharing photos and videos—everything travels directly from the sender to the receiver in just a matter of seconds. But not all communications are so direct. When it comes to sending or receiving money, we need to rely on a third party to complete our transaction. And when we try to buy something online, we meet unknown sellers and service providers who boast of their authenticity and reliability. With only their own wordy assurances and a few listed client-testimonies on their websites, how are we to believe in their legitimacy? Blockchain is challenging these weaknesses and moving us forward into a more simplified world.

Say there was a system where all records could be stored, facts verified, and security against mishaps guaranteed. Then there would be no cases of fraud! Digital transactions, online signature systems, voting and other vital records—all demand a secure and simplified system.

blockchain bitcoin

By using math and cryptography, the blockchain approach is capable of providing an open and decentralized database of every transaction involving value. Originally used for record keeping of the global cryptocurrency Bitcoin, blockchain is now moving ahead to manage money, goods, property, work, and even votes. It creates a record of all transitions and events, the authenticity of which is kept open to be verified by the entire community. With blockchain facilitating open access to Internet transactions without the need for third-party trust organizations, the future global economy is being lured toward this new concept of distributed property and trust.

Blockchain stores information across a network of computer systems, which makes it decentralized and accessible from anywhere in the world. It keeps track of all records and transactions, the information stored on the main system is distributed, thus denying a person, organization, or government direct ownership of it. This decentralization also makes it difficult for anyone to hack or corrupt the network.

Blockchain users use their systems to hold bundles of records submitted by others in form of chronologically organized and chained blocks. These blocks use cryptography to ensure that no records can be changed or altered by anyone else. Blockchain began its operations by assisting the transaction of Bitcoins, a form of cryptocurrency. Trade in Bitcoins is different from regular banking transactions or PayPal, where a third party is involved in approving the payment. Blockchain transactions are processed by people across the world, validating others’ transactions using their personal computers.

All transactions soon will be recorded on a distributed public network, which will be accessible over the Internet. With the likelihood of this change occurring in a period of less than a decade, blockchain will emerge as a global and decentralized source of trust. In consequence, a huge proportion of trust services, from banking to notaries, may be challenged with their very survival. Public regulatory authorities may find it difficult to enforce the current traditional financial regulations as new services provided by blockchain would enable bypassing these traditional financial intermediaries in exchange for low cost and high security.

In the coming years, blockchain will facilitate many services, like collecting taxes, sending money from one country to another, enabling companies that are completely run by algorithms, helping protect our online identities, checking financial fraud, and tracking billions of devices on the Internet of things. With this just the beginning of blockchain, there is a lot more to come.

In this changing scenario, the advent of blockchain will not just open the door to convenient banking and record keeping, but also to lucrative careers. In the coming years, professionals familiar with blockchain will see doors of opportunity opening their way. Shouldn’t you start preparing for the feast right away? You can begin here to learn about cryptography, blockchain, and related technologies. Also, courses on discovering and mastering blockchain are available here.

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