Blockchain is the technology of the moment. For experts, it is like the Internet 20 years ago and is about to transform from a niche affair to a mass service. Here are five things to know about the peer-to-peer network created to transact bitcoin.
It is the technology of the moment, it is on everyone's lips. The blockchain, the peer-to-peer network created to transfer bitcoins, the first cryptocurrency in history, is no longer just a promise.
The large groups banking insurance companies have long been experimenting with the technology to adapt it to their businesses. Meanwhile, even the big web players (such as Facebook and Amazon) have already adopted the distributed network to enhance their services.
What is blockchain and what are the things one needs to know to understand its impact on everyone's life? Here are five things to know.
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The chain of trust
To understand the Blockchain you must imagine a vast ledger in which all transactions occurring within it are recorded. In technical terms, the network is made up of the connection between millions of computers worldwide. All participants in the network "nodes" can monitor the transactions and information that are conveyed within the system, accessing this enormous database.
Blockchain was created as a system to facilitate the first cryptocurrencies in history, bitcoins. Why is it revolutionary? Because the information and transactions that occur are verified by the network's own members, eeliminating the need for intermediaries, in any field from banking to insurance.
Furthermore, being a decentralized system, the risk of fraud or hacker attacks is less. A malicious actor would have to target all the nodes of the Network: each node stores and archives the information, making it immutable and secure.
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The name of the creator of the blockchain is unknown.
Blockchain begins its journey on October 31, 2008, when a document, “Bitcoin: A Peer-to-Peer Electronic Cash System”, is published. (that is, Bitcoin, a peer-to-peer electronic payment system) that outlines a digital currency built on concepts such as security, trust, transparency, and especially the absence of a central entity, like banks, to regulate the entire system.
The protocol is written by a person (or group) known as Satoshi Nakamoto, whose identity has not yet been revealed.
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Blockchain applies to everything
Born, as we said, to enable cryptocurrency transactions, the peer-to-peer network is applicable to any type of exchange, not just cryptocurrencies. The blockchain and its potential make it applicable in an incredible number of situations. From the insurance world, to real estate, to the supply chain, to publishing, up to electionswhich can occur within a controlled and secure system, such as the peer-to-peer network, thus warding off the specter of fraud.
But it is in the financial world (and more specifically in payments) that the revolution will be even stronger. Transactions on the Network, without the need for intermediaries and control mechanisms, will become faster and with lower costs. Let's think about how blockchain paves the way for real-time payments, how it can facilitate cross-border payments for businesses and individuals, or how it can be applied to facilitate micropayments.
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It will have the same impact as the Internet 20 years ago
For many experts, there are many similarities between blockchain and the Internet 20 years ago:
"Blockchain certainly has the potential to have a very large impact, because it primarily concerns important things like people's trust and money. I expect a financial impact of the same order as the Internet," it is the opinion of Mauro Del Rio, one of the pioneers of the web, founder of Buongiorno, a digital business taken public and later sold for 300 million dollars. On Agi his full interview.
In common with the Internet 20 years ago, blockchain also has something else: the timing!
As happened with the web 20 years ago, blockchain has also been discussed for ten years and - according to experts - we are in a decisive phase for the technology to transition from being a tool known and used by a few to a system adopted by everyone.
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The virtuous blockchain of Municipalities
Not only companies and individuals are interested in blockchain, but also institutions.. The Municipality of Naples, for example, is launching its blockchain, also Assoprovider collaborates on the projectto encourage virtuous behavior. In simple terms, citizens who engage in civic actions will be rewarded with their own cryptocurrency (or token) which will be equivalent to one euro, and can be used in stores and affiliated networks. For those interested, the developments of the project will be presented on June 12 in an event in Naples, at the headquarters of the Order of Accountants.
