Demystifying Blockchain Technology with This One Article - DotWallet

Demystifying Blockchain Technology with This One Article


Many people think that blockchain is Bitcoin, but it is not! Blockchain and Bitcoin cannot be equated, Bitcoin is just a way of presenting the blockchain; in short, the blockchain is the underlying technology and infrastructure of Bitcoin, while Bitcoin is  an application on top of the blockchain, this does not mean that blockchain can only be applied to Bitcoin.


The core technologies of the blockchain mainly lie in four aspects: "distributed ledger, consensus mechanism, cryptography and the smart contract", which respectively play the role of data "storage, processing, security and application" in the blockchain. These four parts jointly constitute the basic framework of the blockchain. It brings a new way of data management to the existing Internet world, that is, relatively decentralized data management. This is why that blockchain can have a huge impact, even to be regard as the reason for an Internet revolution!


In this big data era, data represents everything including personal privacy. Information data such as personal social network, location and finances are stored in a centralized third-party platform. Users are left powerless if this third-party monopolizes data or misuses it. But If these data are not stored in a third-party platform, transactions between users cannot be done due to trust issues; take online shopping as an example, users will not conduct transactions with strangers without any guarantee, but if the data is given to a third-party platform, then how it is used by the third-party platform is kept out of sight for the users, so it cannot be fundamentally guaranteed that their personal privacy will be secure within the platform or not be used for malicious business transactions by the third-party platform.


In view of the problems mentioned above in the current economic system, blockchain, as a decentralized database with features like non-tampering, decentralization and traceability, can just solve the problem of non-transparent data and trust issues for missing third-party supervision! At present, blockchain has made tremendous changes both in industries that require high data transparency, such as medical care, food safety and copyright protection, and industries that require high trust, such as finance and taxation. At the national level, since the State Council issued the "Thirteenth Five-Year" National Information Plan in December 2016, the Ministry of Industry and Information Technology, the Ministry of Finance and the Ministry of Commerce have issued relevant policies that support blockchain.  With technological advantages and policy supports, blockchain technology are favored by lots of companies.


As the underlying technology of the Internet digital economy, blockchain brings revolution and subversiveness. At present, the application of blockchain in various fields is still in its infancy stage, there is huge room for further development. In the future, whether it is the government, enterprises or individual, will all be included in the data revolution brought by the blockchain!




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