While most people are just starting to learn about the “blockchain” because of Bitcoin, its roots – and applications – go much deeper than that.
Blockchain is a technology in itself. It dominates Bitcoin, and is the reason why * many * new ICO’s are flooding the market – creating an “ICO” is so easy (no barriers to entry).
The point of the system is to create a decentralized database – which literally means that instead of relying on the likes of “Google” or “Microsoft” to store data, a network of computers (usually powered by individual people) are able to operate in the same way in a large company.
To understand its implications (and thus where the technology can gain the industry) – you need to look at how the system operates at a fundamental level.
Made in 2008 (1 year before Bitcoin), it is an open source software solution. This means that its source code can be downloaded and edited by anyone. However, it should be noted that the central “repository” can only be modified by specific individuals (so code “development” is not free for everyone in the main).
The system works with what is known as a merkle tree – a type of data graph created to provide versioned data access to the computer system.
Merkle trees are used to great effect in many other systems; especially “GIT” (source code management software). If less technical, it stores a “version” of a data set. This version is numbered, and thus can be loaded any time a user wants to remember its old version. In the case of software development, this means that a set of source code can be updated on multiple systems.
The way it works – which is to store a large “file” with updates to a central set of data – is basically what drives the likes of “Bitcoin” and everything else. “crypto” systems. The term “crypto” simply means “cryptographic”, which is the technical term for “encryption”.
Regardless of its core functions, the real benefit of broader “on-chain” adoption is the almost certain “paradigm” it provides to the industry.
There is an idea called “Industry 4.0” that has been floating around for decades. Often mixed with the “Internet of Things”, the idea is that a new layer of “autonomous” machinery can be introduced to create more effective production, distribution and delivery methods for businesses and consumers. Even if it is often heard, it is never adopted.
Many experts are now looking at technology as a way to accelerate this change. The reason is that the interesting thing about “crypto” is that – as has been especially proven by the likes of Ethereum – the various systems built on top of it can be programmed to operate with a layer of logic. .
This logic is exactly what IoT / Industry 4.0 has missed to date-and why so many are looking to the “blockchain” (or an equivalent) to provide a basic level of grounding for new ideas. continued. This standard will give companies the ability to create “decentralized” applications that power intelligent machinery to create faster and more efficient manufacturing processes.