Blockchain Business: These are the Three Core Levels of the Blockchain Technology
Mar 18, 2018 Posted / 4259 Views
One of the most basic functions of a blockchain is its capabilities of securely storing digital assets from a variety of sources. In the early days of the internet development a lot of innovations were already inplace like, online newspapers online museums and so on. The development of online stores caused a breakthrough in the e-commerce economy. Researchers started pondering on how to make e-commerce more efficient and the biggest need was for an e-cash which could be accepted all over the world and easily converted to any local currency.
Although internet was developing at a really faster pace the development of the e-cash didn't come that easy. In 1999 Economist Milton Friedman suggested a new idea regarding the development of the internet. He predicted that the growth of the internet would allow for more deregulation and less government. He noted although that a reliable e-cash is still missing.
It took about a decade for Mr. Friedman dream to be realized, in 2009 Bitcoin and blockchain was invented a perfect ecash that would rise in value over the years and be adapted by many people across the world. Bitcoin introduced the blockchain technology one of the worlds most important inventions since the invention of the internet.
The bitcoin blockchain was designed to store digital records of transaction carried out using the bitcoin e-coin. These records are broadcasted to everyone in the blockchain and yet could not be changed by anyone in the blockchain once it is recorded. It became one of the best tool for ensuring transparency and security in the bitcoin network.
Blockchain allowed for yet another very important aspect of a modern time transaction cycle, the ability to exchange digital assets for another. Users are able to issue new digital assets and transfer ownership to other users without involving any payment processes, banks or stock exchange platforms.
These digital assets can be backed by a consensus between a block of users, real commodities or by a government regulation and attached to a token which represent a unit value of the digital assets. This means every commodity can be values in terms of some digital tokens which can be exchanged on the blockchain.
Currently the exchange that occurs on the blockchain involve the transfer of more than $4 billion on a daily basis making some top blockchain based cryptocurrency exchange platforms more than $100 millions in profits every year.
The last aspect of the blockchain technology which has the highest degree of application in modern commerce in the ability to execute smart contracts. According to investopedia, Smart Contracts are self-executing contracts with the terms of the agreement between the contract parties written in lines of computer program codes. The program containing the contract terms and conditions exists across a distributed, decentralised blockchain network where the smart contract is executed.
Smart contracts is a breakthrough in eliminating constraints to normal running of contract businesses and riding contracting of corruption and bribery. When adapted by government public procurement departments smart contract can ensure a zero tolerance to bribery in the process of awarding government contracts to private firms.
Conducting government projects involving delivery of public services in very many countries is marred by corruption and bribery of public officials by private firms competing to win the lucrative government contracts. Holding these contracting process in a smart contract would enforce transparency in the process of awarding contracts.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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