Published on: 25 Mar 17:37
Picture from Gerd Altmann on Pixabay
Due to the explosive price increase of bitcoin and other crypto currencies in 2017, the majority of the population heard about this innovation.
Some people became “crypto millionairs” because of lucky investitions they had made.
One of them was interviewed in my podcast called “Blockchain Infos”.
Many of you are IT oriented, so you probably know there’s a difference between bitcoin and blockchain. The blockchain is namely the technology behind the bitcoin.
Crypto currencies like bitcoin, ether or litecoin are just a use case for this technology. Of course, the blockchain only got known because of the bitcoin and this technology is mostly used as a digital currency.
Furthermore, there are many other interesting possibilities to use the blockchain. But before going into detail, I’ll explain you the blockchain first.
First of all, it is a distributed database, in which the data are however (completely) replicated in each knot of the network. When there is a blockchain-network with thousands of connected computers, each of those receives the whole amount of data of the blockchian.
Experts know there are also „lightweighted“ computers, like smartphones. However, they don’t contain the total quantity. But in the interests of simplification, we’ll forget about that in this article.
What is special about these data is that they are stringing together in blocks. Each block contains a variety of individual data, mostly transactions. Therefore, one block includes many transactions. A check number for every block will be calculated through a hash function, whereby any data changes made afterwards will become visible.
All the blocks are interlinked. Every block contains its own check number, but also the one of the previous block. Consequently, any data changes can be controlled in every block.
Let’s now fit the pieces of the puzzle together to get the overall picture. Every member of the blockchain network has access to the blocks. Therefore, everybody has an overview and everybody can immediately identify any changes or manipulations.
That’s the blockchains’ great strength. Data manipulation is not possible. Traditionally, there is always a central location, like an organisatoin or a company, guaranteeing the credibility.
Whoever trusts in such a third party, risks the integrity or the data security and/or has to accept higher fees. The blockchain decentralizes the data and ensures that they stay safeguarded by the group of participants.
The blockchain technology can be used – as already remarked – as a digital or crypto currency. Therefore, the currency exchange fees lapse and countries without a functioning banking system gain another payment possibility with bitcoin&co.
The blockchain can also be used in logistics. It improves the tracking of the supply chain and make sure that food is conveyed with better care. A useful side effect is the digitalisation of the processes, for which the blockchain is actually not absolutely required.
I’m convinced that crypto currencies are just the beginning of the blockchain’s success. More and more startups are developping exciting and innovative ideas for adding value with the aid of the blockchain.
Even longterm companies and gigantic concerns started focusing on the blockchain. It will play an increasingly important role in the future. Many people even suggest that the blockchain will have a similar impact to that of the internet.
What does it mean for IT freelancers when the blockchain is getting more popular? Now is the big chance of getting specialized in this area and to acquire certain skills. While critical voices still discuss about whether this technology will catch on or not, you can already start learning and to gain a competitive edge.
In my opinion, many developpers and consultants knowing about the blockchain will be needed in the future. That’s why you should catch up on it, take an online course, read books about the blockchain, learn programming languages which are relevant relating to the blockchain, etc.
With Glolent you can also come into contact with the blockchain. You’ll get the chance to work in blockchain projects.
Dennis Streichert, IT consultant, dabbles in the blockchain. He is convinced that this technology will revolutionize many areas of the economy and society. On his blog https://blockchain-infos.de he describes various possibilities and companies dealing with the blockchain.