Blockchain! Some may find the name strange and complicated, and curiosity sneaks into them to find out what is a blockchain network? Well, BlockChain technology can be defined as a technology that gives a company or a person the right to transfer information or transactions of value to someone securely and with no intermediary person. Blockchain technology is stable, decentralized, and transparent.
What is the concept of blockchain?
The blockchain appeared in 2009, and it attracted great interest from the pioneers of the Internet, whether from ordinary users, programmers, or even investors. It was called the “BlockChain” revolution, and despite passaging many years since its invention, it still has much interest, and many halves tried to find out the weaknesses of the technology in failed attempts to break it and decode it, which proved the strength of the technology well-deserved.
The technology was initially an idea that belonged to a person or group famous under the pseudonym Satoshi Nakamoto, but with passaging time it developed little by little, and the blockchain is considered a cryptographic technology, it comprises data and information, and money that is circulated and traded through unknown sources that cannot be known.
The blockchain is a compound word made up of two words, namely block and chain, which is a chain of blocks. Therefore, the blockchain can be defined as a collection of records or fixed blocks of information and data, and they are controlled and supervised through the use of computers, but it is required that they are not owned. For any entity, person, or entity, the network secures and protects the data chain and is linked to each other through the use of some coding principles.
The blockchain network is not subject to any central authority, but is completely independent in its own right, as it is a shared record that cannot be changed or modified, and the information on the network is open to anyone who wants to see it, hence we can say that anything is based on blockchain technology It is mainly characterized by high transparency.
There are many transactions that take place on the blockchain, and these transactions are free and there is no direct cost to them, and it is a technology aimed at storing digital transactions, verifying their validity, and licensing them over the Internet with a high level of security, and it is characterized by high encryption, making it impossible to break and solve it.
The blockchain has gone through 4 development phases to date, which includes:
1- The first blockchain development stage:
Bitcoin is one of the most popular decentralized digital currencies, and it is a cryptocurrency many parties use as an approved payment system.
2- The second blockchain evolution phase:
It was known that the technology used in the Bitcoin currency could be easily separated and dissolved from the currency and could be used in all other types of currencies that are used between institutions and different parties.
3- Third Blockchain Evolution Stage:
Then the second generation of blockchains appeared called Ethereum, and smart contracts are self-executing contracts, and the platform now has a high market value.
4- The fourth blockchain evolution phase:
It is the most modern stage of blockchain technology and is called Proof of Stake, and the current generation of the technology is protected by proof of work, and it has many uses and advantages of its own.
What is the contribution of blockchain to the development and advancement of various fields?
Blockchain technology has helped develop many areas, including:
- The banking industry and direct dealmaking:
Blockchain technology can facilitate transactions, abandon middlemen, increase access to capital, and enjoy high security of data and information, besides imposing many agreements through smart contracts, and the blockchain technology used in banking services is characterized by transparency as it unifies all joint operations, and is characterized by security as it reduces From the need to put information in the hands of mediators, besides privacy, where selective data can be determined, what can be shown and what can be made private.
Blockchain is also characterized by trust as it helps in cooperation and participation of parties and access to various agreements, besides the possibility of establishing smart contracts to implement them, which makes them help in conducting various commercial operations, as they are programmable.
Blockchain technology helps deliver money faster and easier with little fees, without limits, and there are guarantees of security as it was in the old money delivery system, and technology has contributed to the conduct of financing operations, as initial currency offers initial trading platforms were presented to emerging projects for financing. Without having to go to the banks.
- Real estate:
According to the report announced by the Enterprise Ethereum Alliance, the blockchain has facilitated transferring real estate and increases transparency. Both RBS and Barclays have experimented with the blockchain network to facilitate real estate purchases, where various transactions can be recorded on it and not. It can be forged or tampered with, as it is a digital notebook and the network database is well distributed, which helps to speed verification of data.
- Cryptocurrencies and the Future of Forex:
Some countries have moved towards organizing cryptocurrencies considering the current crises facing the world, and there are at least 10 countries that have announced this matter, including China, the United States of America, Japan, India, Singapore, Malaysia, the Philippines, Germany, and South Korea.
Considering the current crises, the economic turmoil has increased in many countries, and during the Corona crisis, a global recession was announced by the International Monetary Fund, showing that there are nearly 80 countries requesting help, and some countries have announced ads related to their own cryptocurrency regulations.
The Federal Financial Supervision Authority in Germany has published instructions on the matter of companies submitting requests for authorizations to grant cryptocurrency guarding service, and South Korea has begun an experimental program for national digital currencies, while India has regulated cryptocurrencies that are issued by the state and banning all cryptocurrencies. The other, according to what has been discussed between the Central Bank and the government.
One of the main ways that will affect the forex industry in the blockchain is decentralization, as it will make it a reliable and permanent method of recorded information – whether it is transactions, currency rates, or anything else – it provides the foreign currency industry with a unique opportunity to decentralize record keeping and increase the availability of information. Stored.
Besides giving more flexibility to small traders and emerging companies, this gives individuals and companies the ability to exchange money peer-to-peer rather than going through central banks, something that could really change the way the forex industry operates.
- The future of blockchain with mobile:
Some phone manufacturers have already started offering smartphones with blockchain technology, along with various other advantages, including a digital asset portfolio, and access to decentralized applications, as there are some blockchain applications.
Blockchain technology can also give users more control over their personalities and data over the Internet. It can be used in the security and anti-theft aspects of mobile phone owners and access to their data in case they lose their devices, and it is also possible to blacklist the phone’s IMEI number. The loss, as this process allows telecom companies and smartphone suppliers to quickly identify and disable blacklisted devices in order to protect the personal information stored on a lost or stolen phone.
Reducing the amount of plastic in smartphones is another advantage of blockchain technology. For example, Verizon was recently granted a patent from the US Patent and Trademark Office (USTPO) for a system that uses blockchain to create virtual SIM cards, and according to the patent, the blockchain will communicate with the system to link the virtual SIM card. (vSIM) with a unique user account and then activate the SIM card, the device will then send a signal via the blockchain to confirm the activation and activate the SIM.
One of the critical factors driving the demand for blockchain integration is the massive increase in the number of digital transactions, especially with the acceleration of the deployment of 5G technology, where the vital aspects of blockchain technology are speed, ease, flexibility, and security that it provides for monetizing transactions, the Blockchain is the natural evolution of clearing and settlement. In 2021 and beyond.