What is blockchain technology
Blockchain is a technology for storing, validating and licensing digital transactions on the Internet by distributing databases to dealers in an encrypted form in a decentralized manner, with a high degree of security and a degree of encryption that may be impossible to break in light of the technologies available today.
Many researchers and experts assert that blockchain technology will be the gateway to a great world of innovations in the internet space and in destabilizing and changing the methods of business sectors in a way that many companies around the world may disappear as money transfer companies unless they ride the wave and adapt their business to new technologies.
The traditional business management style relies on centralization in most cases and the inevitability of a third party in any transaction that authorizes the transaction or ensures its occurrence. For example, banks are the ones who control the money transfer sector for a set fee. In this case, the bank is the one who plays the role of the third party in the transaction to ensure its occurrence and the transfer of funds from the sender to the sender.
In another example, the Real Estate Registry Department represents the basis for dealing and transferring ownership of any property in any country, so that it plays the role of a third party in return for specific fees that issue properties and lease contracts and ensure smooth dealing.
This centralization participates in transactions of any kind in that it is
* It takes time to be fully completed (lack of speed)
* Expensive financial fees in all transactions
* Vulnerable to hacking and tampering
* Limited participation
* You need certain skills, laws and regulations governing the role of the third party
* Transactions in which there is a high risk of error
Despite all these challenges and flaws, this is still the way around the world, what if you knew that the blockchain technology was designed to get rid of all these challenges and flaws.
In short, the blockchain can be considered a new type of database. Instead of centralized databases in the third party and stored in one server or several servers managed by the third party, the blockchain databases are all frequently stored in all connected devices that deal with each other. Some or in the devices of people interacting with each other who use these databases stored in their devices repeatedly in the validation of any transaction.
Having a copy of the transaction in people’s devices facilitates the detection of any unauthorized transaction.
If we give an example of this, suppose that there is an encrypted database in the Blockchain (that only me can view) and this database is stored in the devices of 5 people in an encrypted form, and this database contains my personal data and I am the only person authorized to make any change to this rule If I change my phone number, the database on my device will make the change in the database on my device and communicate with all devices that contain the same database in an encrypted form to report the change.
On the other hand, until the change is made on all the devices in the blockchain network, they agree first that I have the necessary authority to change the phone number and then update the stored database, suppose that there is a hacker who succeeded in changing my phone number in the blockchain database, this change It will be rejected by other databases in the blockchain network, making hacking into the blockchain network almost impossible.
Blockchain technology features:
* There is no need for any centralization or third party to govern the transaction
* There is no party that approves or rejects the transaction in the event that you are authorized to conduct it
* The strength of the system is in the range of encryption and decentralization
Possible applications for blockchain:
= Financial transactions: for example, electronic currencies such as Bitcoin, stocks, and money transfers
= Supply Chain: Blockchain technology can keep the history of any product or shipment from the origin and even the buyer in a secure, reliable and encrypted manner that cannot be tampered with.
>>Dubai Ports is currently working on the application of blockchain technology in ports to speed up and facilitate port operations with speed, safety, reliability and a high level of encryption
One of the most distinguishing features of blockchain technology is its ability to provide trust even in areas where trust may be difficult.
= And in many areas such as keeping passwords, credit rating, issuing driver’s licenses, marriage certificates, and managing property and assets.
Even today, there is a reservation on the use of blockchain technology because it may cause a change in regulations and laws and may lead to the dispensation of many companies and governmental and private institutions.
What hinders the application of blockchain technology?
* Most people and workers in technical and service institutions do not know what the blockchain technology is.
* The novelty of this technology, which takes time to mature, and its applications vary
* Data management in a decentralized environment
* There are no international standards and standards for this technology
* Regulatory Acceptance: because it simply needs a radical change in procedures, laws and policies
* Resistance to Change.
