What is blockchain and what use can it have in the everyday world?

(this article was originally published on the previous version of the website on 25.4.2023)

Blockchain is becoming one of the most debated concepts of our time. This technological concept based on decentralization and distributed network has the potential to change many aspects of our lives. In this article, we will focus on what blockchain is and what are its real-world applications.

What is blockchain?

Blockchain is a technological concept that combines a number of different technologies and principles. Based on this concept, a decentralized and distributed network is created that allows data to be stored in the form of transaction blocks. These are then linked together in a chain, creating

an immutable and transparent record

of all transactions on the network.

Blockchain was born as a technology that supports the operation of cryptocurrencies such as Bitcoin, but has gradually come to be used in other areas. Blockchain allows data to be recorded digitally, providing transparency and reliability in areas where it is crucial.

How does blockchain work?

The functioning of the blockchain can be described on the basis of several basic principles. These principles are:

Distributed network: the blockchain connects a number of nodes in a network, allowing data to be decentralised.

Blockchain: Data is stored in transaction blocks, which are then linked together in a chain. Each block contains a hash of the previous block, ensuring that the data is immutable.

Cryptography: Blockchain uses cryptographic principles to verify transactions and secure data on the network.

Network management: the network is managed using consensus algorithms to make decisions about transactions and other issues.

Thanks to these principles, blockchain can be used in many areas where it is important to ensure data transparency and reliability.

So in what areas is there an opportunity to take advantage of the transparency and security of blockchain?

Cryptocurrencies:

Cryptocurrencies like Bitcoin are the first and most well-known use of blockchain in the real world. Blockchain enables transparent and secure cryptocurrency transfers that are implemented through transaction blocks. Cryptocurrencies can thus serve as an alternative payment method or as an investment instrument.

Banking:

Banks and financial institutions could use blockchain as a tool to ensure the security and transparency of financial transactions. Blockchain enables faster and cheaper money transfers while reducing the risk of fraud and error.

Healthcare:

Blockchain could have a major application in healthcare. Patients' medical records could be stored on the blockchain, which would allow easier and more secure access to this data. At the same time, blockchain reduces the risk of fraud and data misuse.

Identity:

Blockchain can serve as a means to manage digital identity. Users could have control over their personal data while reducing the risk of misuse of that data.

Voting:

Blockchain enables transparent and secure voting. This reduces the risk of manipulation of election results and increases trust in the electoral process.

Conclusion

Blockchain is a technology that has the potential to change many areas of our lives. With decentralization and a distributed network, it enables transparency and data security. The use of blockchain in the real world is growing and we can expect blockchain to play an increasingly important role in many areas of our lives in the future.