A critical element of cryptocurrencies such as Bitcoin is Blockchain technology. A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Its foundational element, the block, records some or all of the recent transactions. A block goes into the blockchain as a permanent database that is packaged securely and then saved with a cryptographically safe reference to a previous block where it becomes part of a chain which can’t be edited or deleted.
The blockchain design-pattern is not just restricted to support digital currencies rather we will see multiple uses for blockchain technology emerge in the near future.
Trustworthy system: Blockchain presents a new example for establishing and recording a trustworthy interaction. Thus many technology startups are focusing on restoring human systems where trust must be established and displacing systems that use analog methods.
Secure: The popularity of cloud computing and Internet of Things (IoT) has inadvertently led to massive security threats but cybersecurity experts are merely focused on developing new software that just tackle a threat vector without decreasing its number. The next generation of cybersecurity solutions will not only change the way basic systems work but also decrease the number of threat vectors. Blockchain is one such design pattern which has to be built to be impenetrable and is considered to be one of the best ways to secure transactions.
Innovative: The data in a cryptocurrency blockchain must be publicly consumable but most of the worlds’ data that requires protection is in files: documents, images, videos. A security-focused blockchain must be able to store anything. This can be done by de-centralizing the data itself by breaking it into pieces and storing it across multiple blocks in the blockchain. A security-focused blockchain can significantly enhance performance by becoming private and permissioned. This means that all of the nodes are centrally controlled and trusted.
Leading transformation: Today, we see blockchain as the foundation for the kind of security that drives business transformation. There are many opportunities to use blockchain to record all types of data activity and creating an impregnable record of how everything is being used, and by whom. This will create visibility into data-access for all, and a powerful deterrent to those with criminal intentions.
Exciting opportunity: Keeping in mind the recent incidents of data breaches, blockchain’s security related characteristics, with some adaptations, have immense potential in rebuilding the lost trust thus providing exciting opportunity for technologists.
Author – Jaya Kalwani