A couple of years ago, the blockchain was talked about as a technology that could change the world. Today, the subjunctive mood is no longer used. Nevertheless, the question “Why do we need a blockchain?” still arises among those who are just beginning to be interested in this phenomenon. In this article we will try to answer it.
Blockchain solves the problem of trust
Trust is the cornerstone of society. Modern society is accustomed to see a trick in everything, therefore, it is looking for reliable intermediaries to solve certain problems. It is believed that the guarantors and intermediaries should ensure the implementation of certain conditions, services and agreements.
The simplest example of an intermediary is a notary. Tthe notary certifies all the necessary documentation to ensure that the transaction is legal. By his actions, he guarantees the legitimacy and consistency of the entire process.
But it is not always possible to rely even on the notary. Here, the blockchain is a technical alternative to an impartial guarantor of righteousness and transparency.
As a decentralized database of storage, blockchain securely stores information about all operations performed in the network. It is almost impossible to crack or change it because the initial data array is always located at once among the many participants in the process. Data blocks are connected using keys, the key of each block is stored in the header of each block. It contains not only records of this, but also of past blocks.
Due to such reliability and openness for all participants of information exchange, transactions on the blockchain system are as trustworthy and safe as possible.
Why else do we need a blockchain? Risk insurance
In addition to performing the function of data storage, the blockchain can also serve as insurance for a business.
In the spring of 2018, the project of an innovative online cinema began its development. His idea was to directly sell user rights to watch a movie.
The film industry works quite simply. The copyright holder sells the rights to the movies to a specific distributor in a particular country. The user of an online or regular movie theater pays for viewing, thus allocations are distributed according to the established model.
But what if the movie was not sold? After all, then everyone loses: copyright holders do not receive money, an unlicensed product falls into the network.
Under such conditions, the blockchain-cinema should come to the rescue. The model of its action plans to represent the interests of rights holders and directly sell the rights to watch movies to viewers.
The blockchain is present here in a single library of films, access to which will be available to both viewers and rightholders. The same is true of transactions.
It turns out that for certain organizations, the blockchain can serve as a kind of safety cushion for unforeseen circumstances with the sowing of content.
Universal tool for each industry or why blockchain technology is needed
Blockchain is appreciated for its ability to be used in various fields. Not only with direct cash transactions but, for example, in real estate, insurance, and even in elections.
Buying a property is a laborious task, coupled with a lot of legal work. Furthermore not all processes in it are sufficiently transparent and understandable. The blockchain can also help in this matter.
There are already services that guarantee the clarity of records and transactions when buying a home. Digitizing data, reducing unnecessary clerical work, the general acceleration of all processes – the blockchain provides this.
In the context of the insurance business, one of the main advantages of the blockchain is also manifested – data transparency. Insurance data is processed automatically and the safety of all records in the general database ensures customers the right payments.
There are not so many examples of elections on the blockchain, but in the future such an idea has the right to life. It is not difficult to imagine a certain digital voice that a person sends to the account of his candidate. This can occur through a special application, where each voter will have a personal account with a unique access key – like following cryptocurrency wallets. In the voting process, you can observe the level of support for the candidate. Automatic counting will make it possible to announce the election results faster than it usually does.
Blockchain is an effective solution for realizing the prospects of the modern world. I want to believe that the world will gradually understand why the blockchain is needed and will come to the introduction of this technology in most important social and business areas.
Seo-name: Why do we need a blockchain: simple answers to a difficult question
Seo-meta: We answer the question “Why do we need a blockchain?” and consider the main areas of application, as well as the prospects for a revolutionary technology.