Blockchain's magical aura

Today blockchain is considered one of the most advanced technologies of the near future, which can significantly change the model of the economy. The blockchains tipped a bright future in a wide variety of industries. This information background of someone may be misleading about the real possibilities and the actual shortcomings of the technology. So let's see, what is really good about the blockchain?

The blockchain acts as a kind of assistant for two parties who want to exchange data or money in an unprotected network. In everyday life, we often resort to the help of lawyers, bank employees, notaries and other officials. On the Internet, blockchains take over their role, allowing you to transfer money safely, certify documents and perform other important operations. And for this you do not need to go to the bank or notary office at all.

Blockchain can be perceived as a kind of supercomputer, combining a number of nodes. All your data is stored on it safe and sound. What is most valuable - to lose such data is impossible. They are saved forever, and replicated to each node of the system. The data in the blockchain is not only in its final state, but in all previous ones. It is almost impossible for hackers to crack this store, because each successive block is chained to the previous one, and so on. This chain works on numerous computers. Breaking the blockchain is practically an attempt to deceive the global computer network, which seems unrealistic with the current development of technology.
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Let's take a look at the blockchain's “kitchen” and take a look at its slow and neat work. Suppose Vasya decided to send Kole $ 100 with electronic money. To do this, he enters the mobile wallet application, and the service forms a transaction with Vasya's electronic signature. The transaction must be verified by the blockchain. Together with the transactions of other users, the Vasi document gets into the block with a personal ID, verification time, and the ID of the previous block in the chain. Further, the entire array is sent for verification to the global network. After verification, the block is added to the beginning of the chain, forming a permanent and transparent transaction history. And joyful Kohl finally receives the long-awaited $ 100 from Vasya.

For most network users, the term “blockchain” is clearly associated with Bitcoin. These two concepts are far from the same, although they are inextricably linked: the blockchain technology was developed to support Bitcoin. As is known, this cryptocurrency was created in 2008 by someone under the pseudonym Satosi Nakamoto, thereby releasing technology from the genie of the lamp. Today, for these mysterious money on the Internet, you can buy whatever you want. No one is able to control their turnover, and it is much easier to open a bitcoin wallet than a bank account. Network users are very highly appreciated such qualities of this cryptocurrency as anonymity and transparency.

The advantages of the technology make it popular for use in such areas of life as banking, medicine, logistics, law, music. Take, for example, musicians. Unfortunately, with the traditional scheme of publishing music, the bulk of the income goes to the labels, and the creators get crumbs. The use of the blockchain in the music business could allow the author of a song to place it for free listening, while making out individual contracts for use for the private purposes, for example, in a series.

In addition to Biticoin, there are other implementations of blockchain-based cryptocurrencies, for example, Ethereum, suitable for large projects, Hyperledger and Eris Industries, which owners of small private blockchains will appreciate.

The technology of blockchains allows in many areas to get rid of intermediaries and perform various P2P operations directly between the two parties. For example, it is beneficial for those who want to hire a specialist without recruiting agencies, say, a nanny, a driver or a lawyer. Indeed, in this case, do not have to overpay! But it is unlikely that the rapid development of this technology will appeal to large companies that made their fortune by mediating. Who are these intermediaries? There are thousands of them, and some of the most famous are Uber and Airbnb.

Already there are thematic applications based on blockchains. For example, using La'Zooz, you can call a taxi or offer your car without commission. For authors of articles, the Monegraph system operates , which allows to consolidate authorship. Ripple is great for small payments. And such services are becoming more and more.

A fly in the ointment

Unfortunately, the blockchain has flaws that can delay the development of technology. The main of them, Don Tapscott, in his book Blockchain Revolution, relates the enormous energy consumption (due to the large number of miners ensuring the operation and safety of the system), the reduction of jobs in a number of areas and the lack of wise leadership.

Undoubtedly, so far the technology is imperfect. It is impossible to exclude errors and failures in her work. So, for example, in Bitioin there are transactions "long in eternity" (1 hour for residents of the megalopolis) and the high cost of money transfer due to impressive commissions.



Blockchain is praised and criticized very actively. But this is just a tool to help store transaction data. It would be strange to praise or scold any object from real life, for example, an ax. The ax, like the blockchain, is just a tool in the hands of a man. By the same ax, a peasant from the poem of Nekrasov mined firewood to warm his family, and Raskolnikov killed an old woman lender. Therefore, when discussing the blockchain, you should pay attention to the purpose of its use.

What are the currently known advantages and disadvantages of the blockchain?

Benefits:

• data storage security and consumer protection from unauthorized access;
• the empowerment of both large corporations and holdings, and ordinary users;
• the system works without the participation of third parties or intermediaries;
• transparency of all records.

Disadvantages:

• the need to store huge amounts of information. The size of some chains sometimes reaches tens of gigabytes. It is not necessary for particular miners to keep all their chains, but the blockchains are now only taking the first steps.
• low data processing speed, unsuitable for the banking sector and large financial institutions that perform thousands of operations per second;
• energy consumption and a large amount of resources needed for calculations.

On closer inspection, you can see that the blockchain still does not do all that is expected of it. Based on this technology, so far little has been implemented, except for bitcoins and related metadata. The vivid metaphor that you can write anything on the blockchain does not tell us about the need to use additional technologies and resource-intensive hashing processes. So far, these blockchain flaws have not been resolved. From the outside, the situation looks as if it was created only for managing the cryptocurrency without the participation of the controlling organizations. In addition, despite all the hype that has been raised around, blockchain today can hardly be considered a trusted protocol, and it is not able to decentralize all types of data.

No matter what the future holds for technology, it has already taken its place in the hearts of users. At the same time, very heated debates are unfolding around her. Some predict the blockchain the role of a revolutionary technology that can change the world and introduce a new format of interaction between the parties. Others, on the contrary, consider the blockchain an impractical idea, which, having manifested itself in a couple of dozen services, will one day burst like a soap bubble. Needless to say, it is still difficult for many of us to determine our belonging to one side. It remains to observe the developments and draw their own conclusions.