If you are asking yourself a question what’s this “Blockchain thing” and can somebody simplify it for me?
We will try to do that for you as there are many resources out there where there is just tech language as a simplified overview of blockchain technology can be hard to find.
First, we’ll try to get what blockchain technology is in very simplified terms , then see what’s this huss around is all about, and finally, where are people using it and what’s the potential.
Let’s dive right in!
Circle of best friends
Most used technology is based on trust relationships, the creators that build with it trust its liability, and people that use through products trust the process because they get the value out without the need to understand the science behind it. One of the oldest examples of this trust relationship is electricity, a lot of people don’t think about alternating current and Tesla when they turn their bathroom lights on or use their toaster, they just use it. It becomes embedded in the fabric of everyday life -you trust it enough to use it because it just works.
Usually, when dealing with abstract and complicated concepts such as decentralized database and the immutability of data, people outside of the industry can have it rather difficult to join in the conversation and get a fundamental understanding of the technology.
Well, one of the fundamental aspects that Blockchain technology is built upon is - trust.
Blockchain technology uses “blocks” and different protocols to distribute data evenly between every block in the chain thus creating a decentralized database and a system of distributed information. Every block has its ID(Hash) and knows the ID of the one before. If something changes every block in the chain is affected and has to make a consensus if the change is valid or not.
A seat at the table
Let’s imagine those blocks are best friends at the dinner table.
If we agree that one of the most important factors of friendship is trust, let’s imagine a circle of best friends who know each other their whole life and know everything about every person in the circle. Their connection is deep, honest and they help each other go through life by constantly communicating about every decision they will make in the future.
If an outsider tries to change something about a member of this trustworthy circle, everyone around will notice it and, as all best friends do, address that at the dinner table. In our case, this circle of friends is very open to any new members but there are rules to follow if you want them to make room for you to sit in.
For you to get a chair, you need to follow their protocol - where every member makes sure that what you bring to the table is trustworthy. If you can contribute to the circle and the story about yourself is honest and consistent with every member, only then you get a chair and a place at the table.
When you finally sit down, you are a part of a circle where the exchange of information and value is done through consensus and transparency.
Many tables to choose from.
Blockchain technology is still in its early phase of development with more and more people interested in its application in the industries aside from crypto and fintech. Many open-source blockchain platforms are “tables” where you can join the company of others why contribute, participate, and create products on top of the technology platform provides.
Most of them are familiar to the public because they are the backbone platforms of today’s cryptocurrencies such as Bitcoin, Ethereum, Cardano, Ripple, etc. but a lot of people connect them exclusively to ongoing cryptocurrency hype, while the other applications of blockchain technology remain not so familiar.
Understanding the core principles of Blockchain technology can help you see the bigger picture of its application across many industries and the potential it has to improve your business.
The potential of blockchain technology can be seen more and more through the new generation of product solutions that base their user experience on transparency, security, and immutability of data. For more details of how blockchain can be implemented into consumer digital products check our work with Seal The Deal an application for mobile deal-making and legal correspondence.