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August 27, 2019

Is Blockchain Going to Revolutionize Global Economy and Our Lives?

  • business

Let’s break down the reasons why blockchain can revolutionize not only the way we run our transactions but also the way we interact with each other. At Liki Mobile Solution we are focused on the current trends in IT industry, business issues and the field of economy as well. That is why we decided to take up an issue of blockchain technology – the recent hot topic which causes a stir in the world of the economy because it can be put to use in our everyday financial activities. It generates a lot of hype due to its huge, but yet undiscovered potential, which also triggers some confusion. It brings out associations with bitcoin and other cryptocurrencies so that many people even tend to use blockchain and bitcoin interchangeably. As it usually happens, fresh concepts raise doubts because they are not fully understood. That is why let us make sense out of it. First of all, we need to establish that…

BLOCKCHAIN IS NOT BITCOIN

There is something more to it. Although it is the technology that was created to support the existence of cryptocurrency and it lies at the heart of bitcoin, its purpose went far beyond it. Blockchain is capable of so much more and the number of ways we can use it is restricted only by our creativity. Bitcoin also triggered financial frenzy. It even made people wonder if it is the end of using real money. But what is the problem with bitcoin? It has no central authority which would govern it. As a consequence, it can encourage some criminal activity, which doesn’t build trust. However, blockchain – Distributed Ledger Technology (DLT), came as a solution for these problems offering its innate security potential. Next, when we differentiate between blockchain and bitcoin, we can still ask a question…

WHAT DOES THE BLOCK OF CHAINS TECHNICALLY MEAN?

Trying to create a one-sentence definition we could go more or less like this – blockchain is a decentralized registry of assets and transactions made within the peer-to-peer network. What is so special about it? The ability to record every tiny change in the ownership of an asset via creating ‘smart contracts’. Practically it means that whenever any new transaction occurs, its details are available for the participants of a given network who are up-to-date with the whole history of the transaction. Every interference here is contained into a single “block” and added chronologically to the registry creating a sort of continuous line of the history of the transaction, in other words, a chain of blocks. In plain English, the way the data and information are stored within the blockchain technology can be compared to a big financial ledger. What is a ledger? Obviously, it’s a little black book every accountant carries with them. So, surprisingly, blockchain is based on the traditional and well-known system. At this point, you may stop and say – ok, if people have done that through the ages where is the innovation factor?

Of course, the answer lies within its…

SECURITY SYSTEM

In the past, there were the folks who were responsible for controlling financial activity. Now it is the technology alone. Obviously, it is clear that where humans take control over something, the problems of fraud and bias appear. Fortunately, blockchain is regarded as a safe environment resilient to malicious manipulation. This is an open infrastructure where all actions, like updating and introducing changes are secured by cryptography. As a result, all the people and institutions involved gain insight into this big register of data, but none of them is exclusively assigned for this task. This kind of shared responsibility evokes the sense of equality and builds trust in the stored data. Taking a step further, we can predict that this technology is going to totally change our perception of…

ECONOMY AND BUSINESS

There is no business which would function in isolation. It relies on the networks of customers, partners, banks, governments, institutions cooperating with one another. The main assumption of blockchain is based precisely on the group activity, not one institution responsible for everything. Even if currently this technology is still in its infancy, it will fundamentally change and improve how we exchange value and how we run our everyday financial activities, if we start using it in the future. Blockchain creates plenty of benefits not only for the business entrepreneurs but also for the average consumers. Its versatility allows for controlling different types of assets, from digital currency (e.g. bitcoin) to real objects. It definitely gives a new perspective of your….

DAILY TRANSACTIONS

Imagine you go to Amazon or eBay or another marketplace platform with the aim of purchasing some goods online. What are your main concerns? Who is the seller of the thing? Would I have an opportunity to track the route of my package? What if somebody takes over it? Will I get my money back? And so on and so forth. Of course, you can look for confirmation and check reviews or opinions of a seller, but things not always go so smoothly. You are never 100% sure the comments are real or, to make matters worse, a profile of this person can be fragmented, or he doesn’t have it at all. However, blockchain gives you the whole picture, which reflects the truth successfully. Everything is based on the idea of creating contracts between individuals without the need to physically paying money until your requirements are met. Because there is no possibility to hide information, it significantly reduces the level of our uncertainty and mutual distrust.

Hoop Earrings quotation about blockchain

WHAT WILL THE FUTURE BRING?

Can you imagine seeing a map with all the places your food travelled to before it landed at your table, simply via taking a picture of a label? Or being sure your vote was counted and went to the right place? Due to these and other (actually countless) ideas of using it, more and more startups are working on blockchain. That’s why Liki company pays attention to this phenomenon. To sum up, this technology is becoming increasingly popular and is going to dominate the online activities and our lives. Well, there is a lot of fuss around it. Anyway, is it reasonable? Should we treat it as the solution to everything? Can it solve global problems or fight the poverty? Definitely not, but it certainly can make people’s lives easier.

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