Why Blockchain may be in the Future of Most Businesses
BY: BORIS DZHINGAROV ON WEDNESDAY, NOVEMBER 29, 2017
One of the hottest investments today are cryptocurrencies. With Bitcoin leading the way as the most popular cryptocurrency, the market for these “coins” appears to be growing every hour. But the real star of these cryptocurrencies is the underlying technology called blockchain.
But what are cryptocurrencies and why are they so popular right now?
A cryptocurrency is a digital asset designed to work as a currency. It uses complex algorithms to secure the transactions, to control the creation of additional units, and to verify the transfer of assets. The reasons why cryptocurrencies are so exciting is because they are safe, anonymous and unlike conventional currency, they are not controlled or regulated by some singular authority. Their movement is determined purely by market demand, they are also impossible to counterfeit, and every transfer of the currency is done via the Internet in complete anonymity and utter safety to each and every user.
As mentioned, Bitcoin is the leading cryptocurrency but other including Etherium and Litecoin have emerged and are gaining traction. Currently there are more than 900 active cryptocurrencies. Some cryptocurrencies look to be trans-actable worldwide while others look to work within an industry or country.
The technology that allows cryptocurrencies to operate is called blockchain technology which uses a continuously growing list of records, called blocks, which are linked and secured using cryptography. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. This makes blockchains suitable for the recording of events, medical records, and other records management activities, such as identity management, transaction processing, documenting background checking, or food traceability.
Growing Uses for Blockchain Technology
Today blockchain is underpinning a growing number of industry leaders and is being considered for use in everything from financial transactions to research. For example, Dr. Evgeniy Novitsky, the Chairman of the Board of Trustees of the Bauman MSTU, Russia’s leading technical university has instituted a program whereby blockchain technology will be used to underpin a cryptocurrency and also use its features to create a fundamentally new method of organization and operation of many industries. This is currently a leading project under development at the University and in collaboration with Imperial College.
With Dr. Novitsky’s business background as a top manager in the fields of investment and information technology (IT), the work done at MSTU will have real world business applications as well. His continued work demonstrates the level of excellence and will surely continue the tradition of leading technical achievements being common at the school.
As blockchain based business develop, it will put an end to a good portion of the theft, graft and corruption currently hampering business around the world. It will also allow those who cannot use banks to get into the worldwide money system and send and receive money anywhere for extremely low or no fees. Finally because you can trace anything written on a blockchain back to its root, you can use it to ship and track food and medicines throughout the world. Blockchain will certainly create a whole new way of things.
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