During the last couple of years, Bitcoin has managed to grow considerably, and this is totally understandable given the large number of start-ups and investments made in this niche. However, Bitcoin’s underlying network is also quickly gaining ground.
For those who do not know, the blockchain represents a ledger consisting of all legitimate transactions that have been carried out on the network since its appearance. This network remains alive, and is maintained with the help of the numerous nodes present on the market, but also thanks to the bitcoin miners who continuously verify transactions to ensure their authenticity.
As the process is automatic, but also based on consensus at the same time, this allows for a trustless and decentralized system to be created, where people do put faith in orders. To put things better into perspective, whenever a person issues a bitcoin transaction, an encrypted record of it is then sent to all functional nodes on the network, which proceed to verify it via cryptographic calculations, and then display the transaction in question on the ledger. This way, the bitcoin blockchain network is capable of holding an accurate list of all transactions that have been carried out and confirmed so far.
It did take a while, but developers from all around the world managed to realize that the blockchain doesn’t only efficiently fit the monetary market, and that it can have numerous other uses. Based on this, various private blockchains have the potential of automating numerous agents, thus conducting operations on their behalf, while also decreasing waiting times and the costs.
When compared to the public type of blockchains, private ones have a few more benefits, but also disadvantages. While private blockchains lose their decentralized status, they manage to keep sensitive data secure ad private at all times, whereas public blockchains display transactions for everyone to see.
In an attempt to nominate the actual potential of the blockchain network, start-up managers, alongside with researchers have discovered that the network can be implemented on a global scale to help out with a variety of services. These include, but are not limited to sending money via banks, buying and selling stocks, signing agreements, running electoral campaigns, trading, file storage, confirming deposits and withdrawals, managing funds, organizing and managing digital assets, keeping track of identities (such as birth certificates, IDs, online account logins, E-residency, passports, certificates), creating audits, handling health data, facilitating cloud storage, but also providing the infrastructure needed for smart contracts etc.
Basically, there are no actual limits on the uses of the blockchain. While some believe that setting up a dedicated, private, blockchain network can be quite expensive and difficult, this isn’t the case at all, given the wide variety of benefits being offered. Some have even referred to the network as ‘The Ultimate Ledger of Truth’. There may, of course, be certain limitations, yet programmers hold the possibility to set their own settings upon opening up a blockchain network, and the need of consensus for major changes, later on, will work to keep everything secure at all times.
Based on everything that has been outlined so far, the potential of the bitcoin network is huge, with the possibilities being endless. Numerous companies have started departments meant to research and develop their own blockchain technologies, which would later be applied to remove bureaucracy, waiting times, paper-based contracts and costs, for the better good of the public. Most blockchain-related departments are just starting out, yet there are numerous blockchain-based companies already operating, and advocating for the adoption of this new and exciting technology.
What do you personally think about the future of the blockchain network? Let us know your thoughts in the comment section below.