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Why the Blockchain technology and the Internet of the Value are increasingly more relevant
Written by Davies on / Reading time: 4 minutes.
About 10 years ago, someone, under the pseudonym of Satoshi Nakamoto, decided to fulfill a dream. He began to shape it through an algorithm and he communicated it through an article about a P2P system. The way to get it was using a chain of blocks or the Blockchain technology. The start of a revolution had just take shape.
We talk about "a distributed database of records or public ledger of all transactions or digital events that have been executed and shared among participating parties," according to the Sutardja Center for Entrepreneurship & Technology.
We can support everything we told you in the role of the cryptocurrencies, which make possible the Internet of Value, also called The Internet of Money.
Cryptocurrencies and the Internet of Value
Some time ago the occurrence became the driving force behind big ideas that could revolutionize the world. Cryptocurrencies, the Internet of Value, and the blockchain have been developed according to the needs, but at some point, they had to pass through an occurrence. First, it was the one made by Satoshi Nakamoto, and then, there were those of many other professionals.
But, what is the Internet of Value? Applications of this network of networks have put at our disposal many possibilities, among them, the opportunity to exchange value in form of cryptocurrencies. A value that can occur in contracts, actions, intellectual property, or any property that includes something with value. The main difference with respect to other systems such as PayPal is that, with virtual coins, there are no intermediaries.
We are talking about a universal transfer system of a free value.
What does the Blockchain technology provide?
In short, the Blockchain technology provides the security and transparency that we need. The way of conceiving the money began to be transformed some years ago. One of the positive parts of the cryptocurrencies is that the money is traceable, allowing you to identify certain illegal actions. Maybe we are near the moment of a real crypto-revolution that begins to address from a technological dimension. We may even be before the year in which the blockchain begin to take hold and consolidate. It seems to be a fashion concept in recent years, and this chain of blocks may be a fundamental sustenance of privacy in the cryptocurrencies.
Let’s put ourselves in a situation. Typically, if a person wants to send $100 to another one, the operation is performed through a bank. It acts as an intermediary for the transaction and centralizes the money movement from one side to another. In one account, $100 less will be reflected, while on the other account will be $100 euros more. One or two banks have been involved in this operation. However, what is the problem? The person that gives money or the one who receive it have control over the process.
It is here, where the Blockchain starts acting, because it is the one who eliminates the intermediaries. The blockchain is able to decentralize the move by making users themselves to have control over the process, and not the banks. The Blockchain is, nothing more, nothing less, than a kind of book of accounts in which the records are "bound and encrypted to protect the security and privacy of transactions”. In other words, it is a " distributed and secure database".
However, the Blockchain technology applied to cryptocurrencies requires more. There must be multiple users or nodes responsible for checking transactions to validate them and be recorded in the database. The block will then be added to the chain, and will be, from that moment, a transparent record.
Goodbye to the fraud for personal interests
Thanks to the Blockchain technology, capable of synchronizing users, it is possible to reach the irreversibility of the transactions, which prevents a fraud for personal interests.
Cryptocurrencies are providing really important advantages. Countries such as Japan have already "more than 200,000 business establishments who use it actively" against the opinion of the Governor of the Bank of Japan, Haruhiko Kuroda, who does not believe that there is an immediate plan to issue virtual currencies. In contrast, the European Central Bank (ECB), warned of the dangers of investing in cryptocurrencies. Others such as Mark Carney, from the Bank of England, have shown a positive attitude towards the new revolution.
Those are the effects of the change. One day it was just dream of Nakamoto. Today, it is the dream of many, a shared dream.