Blockchain & It's Dark Chapter
Nov 20, 2017 Posted / 2765 Views
Blockchain technology was launched in 2008 along with the digital currency ‘Bitcoin’. Due to the close relationship between blockchain and digital currency are often confused and it is important to explain the clear difference between them. Bitcoin is a digital currency and Blockchain is the technology to move digital currency.
In Blockchain, each block is made up of computer code containing data and can be functioned to represent anything from money (digital currency) to birth certificates. Each block is connected to the other block safely via encryption to make a chain. This chain can be compared to the like, traditional database and contains the combination of data. The Blockchain taken as a whole can be paralleled to an accounting record which covers a record of transactions. Instead of record transactions on paper or on a local ERP software the Blockchain trusts on a ‘Dispersed Ledger’. In applying terms, the Blockchain is just another name for the circulated ledger.
The distributed ledger is a synchronized database stowed concurrently on thousands or computers globally; there are thousands of equivalent copies of the ledger around the world at any given time. The objective of a distributed ledger is to understand the impact of technology; it works as a central source of all transactions which represents at any point in a single source for all the members of this network.
The ledger efficiently exchanges a central ‘trusted’ intermediate which is denoted by a bank in the transfer of money or the authorized land registry in the case of land ownership transmissions. In other words, the Blockchain could ‘cut the third party’ and exchange several key services presented by banks and credit card circuits with money transfer and storage.
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At an advanced level of abstraction, the distributed ledger can be understood as a tamper-proof technique to share information. If widely applied, Blockchain could convert the way social networks not only in monetary transactions but in daily life; just as the internet brought about immediate digital communication, the Blockchain can bring near prompt and safe digital asset transfer and movement.
Due to technical limitation at the stage of technological development lead to the number of
difficulties which the technology will need to overcome. These include:
Each block chain size is 1 MB
Blockchain is limited to, manage 7 transactions per second while VISA has the peak capability to handle 56,000 transactions per second.
The lack of measure means high marginal cost associated with existing systems
The Blockchain technology is offering us with the bricks to build a distributed world. In this new society, digital currencies are the key form of payment, there is whole anonymity and the economy is really regionalized. This has many benefits, of course, but there is a dark side too.
Digital currencies including Zcash, Monero, and Ethereum provide nearly undetectable obscurity features for its users. This is excellent because many people in favor of keeping transactions private.
However, it also eases certain prohibited activities. Money laundering, weapons dealing, online drug and tax prevention are some of its possible applications. But obscurity is not only used for payments. A growing number of online users are making use of strong encryption procedures, VPN’s and onion routing. Users that are active on different platforms like 4chan or Reddit will have possibly observed how anonymity allows the very worst among us.
Moreover, 4chan has been indulged in tricking people microwave their iPhone due to countless suicides, making Apple stock to drop by 10 percent and hoaxing people including fabricating highly toxic chlorine gas.
The complete market cap of all digital currencies combined sits now around $ 90 billion. In comparing, Facebook is worth about five times extra with a market cap of $475 billion. This displays how small the crypto world still is.
We live in a society where half of the world’s wealth is in the hands of one percent of the population. In the digital currency world, wealth distribution is brought to a new exciting. This is mainly due to the problems connected with acquiring these assets. The top 315 Bitcoin address own 25 percent of all socializing coins. This makes market operation an actual threat.
A distributed company or cryptocurrency does not have a cable of command. Although this has different advantages, it can also make the choice making process excruciatingly slow or unsuccessful. A good case study is the current scenario of Bitcoin. Major developers, shareholders, and miners have been evaluated about Bitcoin’s scalability issue for months. However, each party is ferociously defensive their own benefits.
The value of Ether will keep rising unless startups stop mixing out ICOs. Despite ICOs being risky in common, some people have accomplished using them very effectively as speculative vehicles. If you’d like to know more about digital agencies in general – feel free to contact our professional.
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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