What is Blockchain?
Blockchain is a distributed computing technology that records and tracks information. With blockchain technology, users will be able to better manage the value of all the assets in the world. In other words, users can accurately track, identify, and safely manage anything from tangible assets such as housing, automobiles, cash, and land, to intangible assets such as intellectual property rights, patents, copyrights, and brands.
What are the Advantages of Blockchain?
Prior to the advent of blockchain technology, existing systems managed data from an online central server. However, blockchain keeps the data divided into several computers that are connected to the entire chain system. Furthermore, this distributed processing works in conjunction with more secure encryption technologies, enabling greater transparency in the transaction process and faster data tracking.
It is no exaggeration to say that society is developing around the Internet in the modern society where the fourth industry revolution is underway, with web security emerging as one of the key technologies. Blockchain has the advantage of enhancing web security, preventing hackers from attacking and falsifying data, and preventing other various vulnerabilities that the existing centralized management systems have. Finally, third-party transaction methods such as A-B-C can be omitted through the blockchain platform, thereby drastically reducing the transaction costs.
Principles of Blockchain
To understand the principles of blockchain, users are required to learn about the object called a ‘block’. In blockchain systems, block objects are created every time a certain amount of time has passed. For Bitcoin, for example, a new block is added every 10 minutes. This block contains data such as transaction history, which is characterized by the fact that no one will be able to artificially modify it. However, it is also a special object that has the property that everyone will be able to see in terms of its block history. Simply put, blockchain is a database technology where these blocks (data records) are connected one after another.
Examples of Blockchain Usage
The application for blockchain is limitless because there are so many application fields of blockchain usage. Among them, the ‘point[rewards] integration system’ is one of the most representative blockchain usage examples. Dozens of hundreds of point reward apps registered online could only be withdrawn and used when certain amounts were collected. In such a case, online platform called Milk linked to the point system of companies that joined the Milk Alliance and managed the point data in one blockchain, enabling users to use it in various applications.
Yet, this is just the beginning. In fact, 98% of the world’s 7,500 virtual currency types are related to blockchain technology. After all, blockchain is also a kind of database management technology as well. Some of the most comprehensible examples of blockchain use are as follows:
- Everipedia – Encyclopedia (Wiki) content stored in blockchain
- Get Protocol – Development of performance ticketing culture through blockchain technology
- Compound Coin – Loan/interest platform using blockchain
- StormX – Worldwide freelance data blockchain network
The gaming industry is an area that always appears in applications for blockchain. Previously, if users collected goods IN-GAME while playing games, they could only cash the items through specific sites such as PlayerAuctions. However, blockchain technology allows consolidation of all of the games in the world to create an environment where users can exchange goods between games. In particular, through NFT technology which incorporates blockchain, all characters in the game are able to transform into more and more unique characters, and the goods in the game are also becoming valuable.
Is Blockchain Safe?
Is blockchain technology really safe? Yes, blockchain technology is indeed very safe. Experts say that because of the specificity of the blocks as mentioned earlier, blockchain cannot be hacked theoretically – representing a very complete level of security. Ultimately, this is due to the fact that artificially modifying the data recorded in the blockchain is almost impossible with the current human technology.
However, blockchain hacking has been carried out in various ways recently, through methods such as bringing up past ineffective NFT records to surpass block generation. In addition, since it is difficult to penetrate blockchain security directly, more hackers have taken advantage of external services related and linked to blockchain technology, such as that of cryptocurrency exchanges. Even until most recently, there have been cases of crypto jacking damages, in which malicious code is planted to individual users who use cryptocurrency wallet services to leak personal information and subsequently exploit the wallet by obtaining information necessary for wallet authentication.
What are examples of blockchain?
What is the future of blockchain technology?
Many experts have different opinions on the prospects of blockchain. However, in the IT industry, most experts are optimistic about the current blockchain outlook as of 2022. No matter how bad the global economy is due to the aftermath of the COVID-19 pandemic and the war in Ukraine, the cryptocurrency market may not become frozen together.