Blockchain is the core technology, the elemental string of code, that runs crypto currencies such as Bitcoin. This is revolutionary, similar to how the World Wide Web, the Internet, was first introduced decades ago. The Internet as we know, completely altered how we now think and live.
What many associate blockchain with, is it’s something to do with digital currency, but it goes far beyond that.
Like anything else that boldly predicts to alter the world as we know it, skepticism sets in. In the next few years, prepare to accept it or perish.
The reason being, this new technology is destined to make the Internet completely accountable, completely transparent.
So if you’re looking for the next upcoming global shift in virtual technology, then pay attention to blockchain.
Blockchain isn’t going anywhere, and is chugging full steam ahead. It’s the next big bang, but the road will be rocky, so hang on.
It will eventually reach critical mass, as it’s gearing to revolutionize how we do business online.
Blockchain Who What?
Many are confused about blockchain, as they have no idea what its purpose is. It’s similar to the same mass hysteria that occurred, when the Internet was first conceived.
Back then, the corporate world had no idea what a web page was, as it took close to a decade for mainstream business, to finally adopt it.
For those who did so early, the pioneers who developed commerce on the Internet, made all the money.
So if you’re reading this, then it’s time to learn what blockchain is, this before everyone else does.
The Winner Is Blockchain
Blockchain is on the top of the heap, the successor, it’s the culmination, the sum result of everything online.
It’s the final result of all the previous interlocking online technologies combined, that’s been developed thus far.
First there was the original WWW. The World Wide Web, the Super Information highway.
Then the Internet transformed itself into Web 2.0 or social media, while shifting itself to everything mobile.
What developed was a series of these fragments of revolutionary advancements, which ultimately led to blockchain.
The Progression Of Blockchain
The initial phase of blockchain, is comprised of easy to understand and trustable simple ledger applications.
What this does is addresses the Internet’s most lacking trust factors, such as remittance, cross-border payments, and corresponding banking systems, by using artificial intelligence.
Every financial institution and exchange, are now aware of the possibilities and are adapting to comply, to the opportunities blockchain can potentially do.
The next phase, the one that’s upcoming are “smart contracts,” which are set to revolutionize processes such as international trade, and the “Internet of Things” (IoT) application management.
There are a variety of daunting issues however, which remains to be solved, to be made user friendly.
This so it can be accepted by the masses, the general Internet population, and will take years to develop.
The final phase when it comes to blockchain applications, is integrating these software systems with artificial intelligence (AI).
This will allow for automated machine learning capabilities, which can seamlessly activate the blockchain functionality.
The Use Of “Smart Contracts”
This is where blockchain can help your business in the near future, which is to simplify and cut costs.
Say there are two international companies on different continents, and are interested to trade a commodity such as lumber.
What they’ll normally do, is use their respective banks and other “middlemen” to proceed with the import/export transaction.
It’s become a painstaking slow and an expensive time consuming process, filled with potential errors.
The process hasn’t changed since global trade began over a century ago.
Even with the so called and supposedly “paperless” Internet, what’s still required is the massive shuffling of paperwork, for a single transaction.
Both parties involved will spend inordinate amounts of time, proving they’re valid as claimed.
That they’re both capable of fulfilling their end of the deal, when it comes to trading across international borders.
Blockchain Steps In
This is where blockchain smart contracts come in, which is set to transform the $7 trillion international trade industry, for instance.
Say you have a cargo shipment that contains lumber from North America, which is slowly chugging it’s way to China.
What the merchants (buyers) involved did however, was resold the lumber several times during the trip.
The parties involved in every transaction are the banks, agents, inspectors, and the commodity trading firms.
This involves hundreds of documents that goes back and forth which needs to be verified, costing hours to complete each trade.
But by using smart contracts, the transaction for each trade can save enormous time. It can potentially reduce the chore to minutes.
The Blockchain Solution
This massive chore, the movement of handling physical documents written on paper, has always been prone to human error, at times fraud. All which causes delays along the process.
With blockchain, every document gets digitized, making it easier and safer to authenticate, as they’re guaranteed to be valid.
Doing so solves hours of headache inducing administrative issues and paperwork.
What’s possible, is all parties involved can instantly “auto-check” every document on their computer, this rather than doing it manually by making phone calls back and forth.
What the experts are estimating, is that blockchain can potentially cut costs by $20 billion, not to mention the time saved.
Blockchain Is All About Trust And Transparency
Blockchain is an online platform, which allows for the transmission of undisputed transparent digital information, without the risk of it being copied, tampered, or stolen.
Blockchain was originally conceived, to house, to regulate and authenticate it’s most famous model, Bitcoin, the digital currency.
This is the verification process the Internet has been waiting for, to make it legitimate and ironclad safe for all users, particularly buyers and sellers.
Developers are now discovering better more sophisticated uses for blockchain.
The concept of virtual mechanical trust and immediate digital authentication, is finding its way towards seamless online processes for conducting business online, without fear or doubt.
The Definition Of Blockchain
Blockchain can be defined as an algorithm, a data distribution structure and system, originally developed for the unregulated movement of electronic cash. Crypto currency such as Bitcoin.
This without the need of a third party centralized administrator such as a bank, to record and monitor the financial transaction.
Blockchain can’t be controlled by a single individual, entity, or identity. It has no one point of failure as its a transparent mechanical process.
The original Internet worked out all its kinks, to prove itself to be durable and reliable, yet it still needs a third party interaction when it comes to commerce.
Blockchain is able to eliminate this step, as it’s the final installment, that’s set to verify global business transactions.
Currently, its potential usage is for banks and global businesses, who are involved in trade across borders.
The technology however, will eventually shift to day-to-day transactions, and for general public usage. All that’s needed, is time and patience.