Expert Article Draft
A beginner’s guide to Blockchain
I wonder why many of
my friends and acquaintances still have problems understanding what Blockchain technology
really is. At the same I wonder why I myself didn’t. If I look back at it, it
was two months ago, this past December, when I got struck with the value of the
mysterious technology.
What is Blockchain?
There is an important
piece that every block has called a hash. A hash is a set of characters that is
derived from the information contained in the block. For example, the block of
Group 1 has would have the hash that keeps the information on the first letter
of each of the names. It would be something like “BARRC” (technically that’s
not how it works, but you get the idea).
The next block is connected with a chain and carries the hash of
the previous block. In this example, the block of Group 2 has the information
about the previous hash (Prev Hash: BARRC) and its own hash (Hash: CBEJA). And
this continues on. If someone tampers the first block to add another name (say,
Clark), the hash would become “BARRCC.” But the next block has already stored
the hash as “BARRC.” This mismatch would destroy the chain. The purpose of the
hash is to make sure that no one tampers the previous content or data.
What if someone tries to tamper it?
There’s one thing that I didn’t tell you. The data of the
Blockchain is not stored on a single computer. Instead, it is stored on every
user’s computer. Once you become the user of a particular Blockchain, your
computer will automatically download the data. If someone decides to tamper the
content, the network will choose what the majority says is correct.
And even better – the Blockchain content doesn’t have a central
server. For example, Instagram has servers and every time its user gets on the
app, the phone requests the needed information from the servers. For the
Blockchain, however, all of the data and content is stored on users’ computers.
It also means that if every computer in the networks is turned off, the
Blockchain network is dead, too (which is very unlikely).
Why is it useful?
Imagine your friend Joe lends $100 from you for a week. A week
later, Joe hasn’t paid back to you, and you’re helpless; you don’t want to
start an argument and you also didn’t have a formal agreement. Sounds familiar?
In this case, the Blockchain technology in the form of a
“Private Blockchain” can be helpful. Unlike in the Public Blockchain, the
owners of a Private Blockchain validate the users of its network.
How does it help you and
your friend Joe?
In your case, we need to make sure that Joe pays the lent money
back. A time-based trigger would solve such problem. It works just like your
favorite Calendar app that sends you notifications of upcoming events. It
performs the action (alert) at a previously specified time.
In Joe’s case, it’s a condition-based trigger. It works just
like Amazon, when it sends you the purchased item, only after the payment is
confirmed. Only after Amazon algorithms check if the money were delivered
to its bank account, then it proceeds with the shipping process.
The agreement then needs to be transformed into a code, such as:
“If it’s been 7 days since Joe lent the $100 from me and the money is not
returned then. Transfer $100 from Joe’s account to my account.”
Both are happy because you don’t have to trust Joe’s consent if
he pays back or not. Joe’s happy that he doesn’t have to even worry about
returning the money. (assuming the money will be transferred to Sarah
automatically at the end of the lent period)
The future of Blockchain
Now that you know that Blockchain is a network trustworthy and
automated information record that, there is a lot of potential for growth. Here
are just a few examples.
Financial records
Right now, large banks and financial institutions are the ones
that keep our financial records. But can we fully trust them? What if someone
tries to tamper some data and erase certain information? On the other hand,
imagine a world, where all of that financial information is safely stored in a decentralized
space. This would also mean that there will be no need for middlemen, the
banks, between you and vendors.
Personal authentication
Have you ever forgotten a password to your Instagram account and
had to spend a few minutes (in the best scenario) to restore it back? In the
worst case, it could also be hacked. With the use of Blockchain, all of
passwords to your numerous favorite websites can be stored safely. It can even
be used for personal authentication. Imagine a world, where you could go vote
for the next President and avoid any possibility that your vote goes elsewhere.
The Blockchain technology could provide a data storage, where your vote is
recorded in a secured network.
These are just a few ways of implementing the Blockchain in
today’s world. But there numerous opportunities to grow with this technology.
The only question is – how successful will we be at implementing all of its
benefits?
Citations:
@novad, and Mike Ray @blockchain1. "What is Blockchain Technology? A
Step-by-Step Guide For Beginners." Blockgeeks. December 22, 2017. Accessed
February 10, 2018.
https://blockgeeks.com/guides/what-is-blockchain-technology/.
Bauerle, Nolan.
"What Are the Applications and Use Cases of Blockchains?" CoinDesk.
March 15, 2017. Accessed February 10, 2018.
https://www.coindesk.com/information/applications-use-cases-blockchains/.
Finley, Klint.
"Blockchain: The Complete Guide." Wired. February 01, 2018. Accessed
February 10, 2018. https://www.wired.com/story/guide-blockchain/.
Athena @ ST.
"Future of Blockchain." Future of Blockchain. September 22, 2015. Accessed
February 10, 2018.
https://www.shapingtomorrow.com/home/alert/665529-Future-of--Blockchain.
Hey Bulat! Looks like we're writing on the same topic. I'm glad our articles are still different in many ways. I like the structure of your article, especially the fact that you've incorporated tables to explain the concept. Also, the fact that you're writing in first person makes the article personal. It shows why YOU are writing about a technology most people have failed to understand, yet you want to share your knowledge about the subject. Can't wait to read the rest of the article (i hope we don't use similar sources)
ReplyDeleteHi, Bulat! I am one of those people who don't know anything about blockchain technology, so it was helpful to read your explanation of it step by step. I like how you added the example of Joe and Sarah; it helped clarify why something like this even exists. You're off to a great start!
ReplyDeleteHi Bulat! I enjoyed your explanation, and the Sarah example was a great idea. I understand the "there are two parts: a block and a chain" but the next sentence is a little bit confusing for a newcomer like myself. But by the end, I have a much a much more clear understanding, so job well done.
ReplyDeleteI really like your topic and I think they way you explain it makes it really simple to understand. I think it's great the way you used the names etc to explain how it works. The only thing I think you can improve is the first phrase since you could have written something that would refer to the Sarah's example but leaving an open question that you would answer in the essay. I was thinking at something like "have you ever lended money to your friends and never got them back? with the blockchain you'll never face this problem again". This is just a really simple example but I think you'll engage the reader in a stronger way by describing a situation that he has faced but not solved.
ReplyDelete