Why is Blockchain Technology so exciting?

    Why is Blockchain Technology so exciting?   

    Since the start of Bitcoin 9 years ago, cryptocurrency has been on the rise in a big way. To date there are more than 1500 cryptocurrencies, and people want to know more about it.   The big news of cryptocurrency isn’t actually the currency itself but the technology behind the cryptocurrency: Blockchain.   Think of Blockchain as a digital ledger that records all the transactions that have occured beforehand. This information is public and everytime a cryptocurrency is purchased the digital ledger comes with it.  This is why bitcoin was so exciting, because it did not need a centralized system to keep track of transactions. Bitcoin’s system is spread across many computers, and these computers are called Nodes. When a transaction takes place each node receives the request of the transaction, updates their ledger and sends it on to another node. If person A sold their bitcoin to person B the blockchain had a record that it was sold from person A to B. This also prevented bitcoin from being forged illegally. The idea that a currency could be decentralized excited the world. ) 

 

  Why people wanted a decentralized currency.   

  When you hold your money in a bank all the information is stored in a centralized system. This system is quite well secured, however if a hacker’s attack did get through the entire system would be down.
 Blockchain stores its information over a network of personal computers. This means, unlike a centralized system, a hacker attack is hard pressed to take down the entire system as it would have to attack many computers in different locations.   

  With a decentralized currency payments can also be more discrete. When you give your credit card information online they have your full name, your address, etc. However by paying with bitcoin the blockchain lists all the transactions that came before it, so the proof that it is legitimate is right in the code.   

  Blockchain going beyond Cryptocurrency  

    The potential of Blockchain technology can go beyond cryptocurrency. Accountants have started looking into using blockchain in accounting. A transparent ledger of all accounting records would lessen the amount of mistakes made. As well, customers can be sure of their accountants honesty and accuracy.  Blockchain technology could also be applied to voting in elections. With a transparent record, anonymous for the individuals mind you, voting fraud and result manipulation would be reduced.  Impoverished people can use blockchain payments to go around bank transactions. Bank accounts can have fees, can charge transaction fees and it can be hard to send money to certain countries. With blockchain payments they can easily send money over the phone, and as long as the recipient has internet access they can receive the money.   

    It has been said that cryptocurrency is a passing fad, that remains yet to be seen. 

    The one thing we can be sure of though, Blockchain technology is here to stay.