If you look at the current data volume, you notice that it is growing exponentially. By 2020, it should be 35 zetabytes of data that are pushed over the servers every day. With so many transactions, not only the complexity and vulnerability of the individual processes increase, but also the costs are increasing.
Drivers of this change are eCommerce, online banking, in-app purchases and the increasing use of mobile devices. With mobile communication, people today have unlimited possibilities to produce data. Anywhere, anytime. With the advent of the Internet of Things, according to future studies, the whole thing will eventually explode.
Blockchain technology – a way through the flood of data?
Looking for a solution to the problem, blockchain comes to mind. Not only is the technology currently one of the number 1 buzzwords, it also offers a ray of hope in the jungle of confusing data!
Blockchain: Massively Simplified (Source: TEDx Talks)
The principle is simple. Blockchain provides a shared, distributed account that makes it easy to capture transactions and track assets on a network. This can be a company network or a decentralized network. Within this network assets, whether material (e. g. house, car, cash) or intangible (branding, copyrights, patents), can be transferred quickly and securely. Virtually anything of value can be traded in a block chain network. This reduces risks and reduces costs for all involved. Whole processes that are currently carried out in transactions of banks or in the sale of securities are dropped at one fell swoop.
Blockchain and the Bitcoin
Even if the experts among the readers will now say that it is clear that the Bitcoin and the Blockchain are not one and the same, I think it has to be mentioned again anyway.
The Bitcoin is based on the foundation of the blockchain. If we stick to the synonym of the account from above, the blockchain serves as the common “account” of Bitcoin. It provides the means to record Bitcoin transactions – the “shared ledger”. This shared ledger can be used to record individual transactions and track asset movements.
To get a better grip, you should consider Blockchain as an operating system, like Microsoft Windows or iOS. Bitcoin is one of many possible programs that can run on this operating system. Cryptocurrency is therefore comparable to Word or Excel on a computer.
Exactly this explanation shows how important the Blockchain technology is. Even if the Bitcoin bubble should burst, as it is often called in the media today, and what causes fears about the share price development, the block chain technology and its means remain in place.
With Blockchain, trust becomes a central currency for banks, politics and retail. Many companies, if they have to transfer data, can implement a cost-effective and efficient process that makes many processes easier. The future will show what potential can all be exploited, but it is already clear that the blockchain has come to stay!