Quite a number of people claim that blockchain is great, but have different opinions about Bitcoin. Even though Blockchain was never mentioned in Satoshi Nakamoto’s whitepaper, it has become the buzzword in this day and age.
A blockchain is a secure, distributed, and shared database. Call it a shared ledger of data. Using Bitcoin, Satoshi Nakamoto was able to demonstrate how blockchain could be applied to currency. Some of the smartest people in the world are putting their money where their mouth is when it comes to this technology’s ability to disrupt other industries, similar to what Bitcoin did with currency.
Digital Assets & Stocks
Assets, stocks, including other digital tokens on the blockchain are some of the exciting and more powerful use-cases. Using blockchain, you’ll be able to exchange securely—stocks, bonds, rewards, digital keys, and another asset—just as Bitcoins. Many of these applications rely on Bitcoin’s blockchain to maximize their security.
A typical example of digital assets on blockchain is stocks. Rather than issue shares using exchanges like NASDAQ or NYSE, a company can decide to issue colored coins on the Bitcoin blockchain as it’s shares. Subsequently, the shares could be sent, received, and traded digitally with very low friction. There’s an elimination of a middleman in approving or verifying shares. For users in restricted markets, they would immediately have access to the same financial systems and tools that are found in more developed economies.
Another perfect example of the digital asset on the blockchain is a car key. In today’s world, when a car is purchased, it must be delivered physically, including the title and key. In years to come, car titles may go public on the blockchain and the key digital. All data may be verified using the blockchain. For the car to be sold, the seller would need to send the digital key to a new owner, who will then use it to turn on the car.
Smart contracts are code that is stored and replicated on a blockchain. They are executed across the distributed network of computers that house the blockchains. Smart contracts can perform a wide range of functions including updating the ledger (recording cryptocurrency payments).
Smart contracts enable trustless financial services like the automatic execution of trade agreements, loans, micropayments, and more. With the advent of this trustless financial service, there is no need for the third party to be involved, lessening the need for banks, lawyers, and other professional services.
When data is embedded and hashed into secure blockchains like Bitcoin, it creates unforgettable and immutable data. Because that data is stored inside the Bitcoin itself, it creates an audit trail that can be traced back to verify what exactly has transpired with that blockchain, which acts as a digital receipt of sorts. Since it’s immutable and is in an ordered list that goes back to when the blockchain was started, it’s easily verifiable.
Blockchain can be used to share files on a decentralized network, which is what projects like Sia aims to achieve. If you’re a user with extra disc space, you’ll be able to rent out unused storage space, and users that are in need of cloud storage space can now pay for storage of files on computers across the network.
The disruption caused by Uber in the transportation industry is palpable. However, some governments have tried to show their displeasure, claiming it is limited in reach; this is done to protect the existing taxi companies. La’Zooz is a blockchain-based ridesharing solution that rewards its developers, users, and drivers with tokens called Zooz. In La’Zooz case, the government has no authority over its system. Hence it cannot be shut down or blocked by governments.
All of these secure digital relationships were not possible before, but now, data can be secured differently, disclosed differently and even recorded differently. So wouldn’t you rather plug into the Blockchain advantage?