Blockchain – brilliant technology behind the hype about crypto currencies
More than just Bitcoin?
Ever since the end of 2017 topics around blockchain, crypto currencies and bitcoin are not only discussed among “tech insiders” in Switzerland or Singapore, but also all over the world and especially in the media. Meanwhile, there are countless reports, valuations, forecasts and everything that goes with a real hype about the topic. Why is blockchain such a hype? Why will this technology keep us fascinated for a very long time?
The promising technology behind Bitcoin is the distributed ledger technology, which is usually referred to as “blockchain”. It enables a profound change in many industries and offers numerous fields of applications. EARLY BRANDS experience from blockchain projects shows us that the blockchain will be applied in more and more companies and industries in the future because of its various possibilities.
What is behind the blockchain?
The heart of the blockchain is a decentralized and secure data storage as encrypted data were distributed across a network of nodes. The data were stored tamper-proof and transparent but cannot be subsequently changed. Compared to the classic models of online data storage, there is no need for a central third-party data storage. Consequently, only the producer of the data has the control over this data in the blockchain.
With this fundamental evolution of data storage in place, many companies explore new opportunities to store digital content on the blockchain such as photos, music, texts or information about valuables like art or diamonds. For example, Everledger offers blockchain-based solutions to track art, wines, and other valuables transparently throughout their lifetime and to identify their origins. This ensures trust and transparency along the supply chain.
It is not surprising that blockchain technology has particularly become well-known in the financial industry as Bitcoin, Ether and hundreds of other cryptocurrencies are products of this technology. Compared to the traditional money transfer of banks, which can take few days, the blockchain enables cost-effective, secure payment transactions across borders in real time. Ripple is just one example for many other implemented blockchain projects in the financial industry. Ripple for instance, focuses on a digital worldwide banking network.
What is a smart contract?
Another fascinating thing in the world of blockchains are smart contracts. A smart contract means nothing else than the automated execution of a predetermined operation with the fulfillment of previously predetermined conditions. The decentralized recording of the date on the blockchain supports the execution of these contracts, which in some cases significantly speeds up processes and reduces costs.
In the case of Fizzy, it means that passengers can easily get their insurance for the booked flight online and will get back their money automatically if the flight is delayed for more than two hours. This is ensured by comparing the planned and actual flight times of the aircraft in the Smart Contract. Such automated processes can also be observed, for example, at Neufund. There, the blockchain technology is used to facilitate equity financing. Smart contracts serve here in order to represent contracts of the involved parties on the blockchain.
What comes next?
There are so many different and promising applications for the blockchain – the ones described here are certainly just the beginning of a new and exciting blockchain era. We from EARLY BRANDS are eager for the exciting changes and technological advancements by the blockchain and are looking forward to shaping them.
Catch the Future…!