What is Blockchain? Why is it considered the foundation for cryptocurrencies? And what are its practical applications in daily life?
Blockchain technology was first introduced by Satoshi Nakamoto, who is still anonymous, in 2008. Simply put, Blockchain is a sequence of blocks containing encrypted data over time.
This Blockchain block has 5 special characteristics: security, scatter, transparency, immutability, and smart contract.
- Confidentiality, blockchain ensures that hackers cannot decrypt accounts on the network. According to calculations made in 2017, the most powerful supercomputer also took 0.65 Billion years to decipher a bitcoin wallet address.
- Distributed features are reflected in the information, data distributions, available all over the world. It is very difficult to attack the entire network at once.
- Transparency, transactions on Blockchain are recorded and transparently stored in the form of a hidden list of users through wallet addresses, accessible to anyone.
- The data in the Blockchain is almost unmodifiable, it can only be modified by the creator, and must have acceptance based on protocols such as voting.
- The most outstanding feature of Blockchain is the smart contract, it contains the protocols that help the algorithm on the Blockchain to be automatically executed based on the signed agreements.
In healthcare, blockchain is used to share patient medical records between hospitals, helping people save on examination costs. Transparency also applies to verifying the provenance of drugs, thereby eliminating illicit drug production.
In education, Blockchain technology helps schools manage the learning process and evaluate qualifications thanks to its immutability. In Vietnam, Hoa Sen University is the first educational institution to apply Blockchain to manage students’ degrees. Blockchain technology is also a bridge between candidates and employers because the data of the entire learning process will be recorded and stored immutably on the Blockchain platform. Candidates only need to share the information in the ID, so that employers can easily find the right factor.
Banking and finance is the area where blockchain technology has the strongest impact. If the traditional verification process at banks involves many steps and takes a long time, it makes users uncomfortable. Blockchain-based transactions happen in real-time, so the recipient won’t have to wait a few days, but will receive the funds immediately.
Considering the current time, the power of Blockchain technology has been gradually changing the world. Industries and the way we live will be shaped by Blockchain. Become a part of life as the internet did. Typically, the Defi decentralized financial system is increasingly developing on the Blockchain platform.