What can the Bitcoin Blockchain concept do?
Blockchain is the innovative technology behind Bitcoin. It’s basically an open source general ledger: if you think of an accounting ledger system, the first page contains the original entry; With Bitcoin, the first block in the blockchain is called its configuration block.
Now, what the blockchain does differently from a normal ledger system is that it keeps a record of what was previously written on the previous block in the next block – as if in a ledger system, each page contains a summary of all the previous pages.
As long as the blockchain is in a healthy state (and is not controlled by any single person or entity), this decentralized system records and maintains data integrity within the system in an open and transparent manner. Thus, every entry in this ledger system is verified and confirmed by sufficient number of members of that system to ensure its correctness and validity.
So, what can be done with this? Here are some ideas on how to put such a system in place with some real world applications:
- Since Bitcoin is a digital currency, it makes sense for the blockchain to serve as the infrastructure on which actual banking transactions will take place.
- Banks can connect via the blockchain to send and receive money flows and individual transactions.
- The blockchain could replace the infrastructure behind SEPA (Single Euro Payment Area).
- It will take just a few minutes to send money from country A to country B. And there is no reason why the concept of blockchain cannot go global.
Another simple blockchain app will allow those without bank accounts to connect via a simple wallet or app on their phone. If these people have bitcoins, the app will allow them to convert to fiat and send it to any bank account in the world. It can also function as a peer-to-peer system, thus bypassing organizations such as Western Union and MoneyGram. Or, these companies could adopt the blockchain as the primary infrastructure on which to run their own transactions.
The lawyers who negotiate contracts can essentially be replaced by the blockchain. Making a will or selling a house or car – these are fairly standard contracts. Lawyers are the custodians of such systems, and they are very expensive, too. Imagine if all you needed was a blockchain-based application for both seller and buyer, through which you followed an action. By doing so, you have entered into a legally binding contact that has been confirmed by the blockchain. sound enticing?
How about voting? A blockchain application can protect against electoral fraud as well. Each voter will be given a voting card (a key combination or an application entry mechanism) and will vote online. The vote will be confirmed by the blockchain, with better security than current systems provide. A blockchain security system can also be put in place while maintaining the existing system for polling places.
Going to banking, usernames and passwords can be replaced with an application where the keys confirm the verification of an individual’s identity. In addition to providing a secure login for systems and accounts, a verified digital identity can be used for all types of systems, username and password substitution or two-factor authentication.