Only recently, the President of China, Xi Jinping, publicly acknowledged the potentials inherent in the blockchain and by so doing, endorsed this fast sweeping revolutionary technology for the first time.
He was at the annual academic conference hosted by the Chinese Academy on the 28th of May 2018 when he proposed in his speech that China cash in on the blockchain technology as it was a critical part of a technology revolution.
Why Did Xi Jinping See Blockchain As A Breakthrough?
He advised China in this wise, because he believed that it would place the country on an advantageous pedestal when blockchain begins to make the global economy thrive.
He also pointed out that to make this desired position in world economy a reality, China will launch national laboratories with high standards to foster research and development of technology infrastructure.
Jinping stated that since the inception of the 21st century, the world economic configuration is gradually being restructured by the industrial revolution.
Interestingly, China’s State Council has already introduced the concept of blockchain as part of an information technology reformation strategy in the country’s 13th five-years economic development plan, spanning from 2016 to 2020.
As at 24th of May, the country’s Guangdong Free-trade Zone has been ordered to accelerate blockchain development and applications as part of the region’s economic reform.
Unveiling The Elusive Blockchain Concept
After reading about China’s decision, it is worthy to know what Blockchain really is.
It wouldn’t be unusual to hear a newbie in the crypto world scream “what on earth is a blockchain!” Well, this article is set to cast light on the gray areas and bring you into full understanding of the knotty blockchain issue.
Unraveling Knotty Blockchain Issues
Blockchain is a technology devised to handle multiple transactions at a time. The technology was born out of the need to solve the problems of cumbersomeness that arises when a computer handles multiple transactions separately.
The means devised to handle this problem is grouping all the existing blocks according to homogeneity. So the various homogeneous groups formed, then constitute the blockchain (block + chain).
Before The Advent Of Blockchain
Without gainsaying, as far back as the world goes, people have always been careful about financial transactions.
If any person would go into a financial venture, they want to be sure that the person they are dealing with can be trusted.
A level of trust must have been built in the other trading party. And so, this has caused people to rely heavily on banks and government bodies because these sectors are public, and in instances where there are suspicion of any foul play, they can be probed because they are accountable.
Salient issues like authentication and record keeping are germane to building and solidifying trust in the other party.
The pace of the digital age has even made the need for intermediaries more acute because people are keen on preventing problems such as the reproduction of assets when they are secured by digital apparatuses; which creates a problem known as double spending.
This, in itself has long since prevented peer to peer transfer of digital assets.
However, developers have thought of the possibility of coming up with a design that does not allow for third parties when doing a digital transaction, and such means will not fall short of efficiency but better enhanced.
The Cryptospace, Housing The Stairway To The Future Of Global Economy.
The world of cryptocurrency thrives on the blockchain technology. What makes the cryptospace an exciting topic in recent times is not exactly the currencies in circulation but the technology that makes these currencies go round.
Blockchain to cryptocurrency, is what internet is to the email. Investors are beginning to picture a revolution that would spell greater things within the economy as a result of the many possibilities offered by the blockchain technology.
A post on Medium inferred that blockchain is a kind of decentralized database or distributed ledger that updates owner’s digital record continuously.
With a distributed ledger, instead of having a central administrator like a traditional database, there is a network of replicated database that is synchronized through the internet and can be viewed by anyone.
Blockchain’s Elimination Intermediaries And High Security Profile Impacting The World.
The nature of the blockchain technology, which is both decentralized and open allows people to trust one another and even open the door for peer to peer transaction; a possibility that was unavailable before the advent of blockchain.
Since it is now possible to do digital transactions without fear of double spending, the idea of using intermediaries automatically becomes obsolete.
The security of using a blockchain is one that has not been known since the history of the world because the hacking problems that plague the traditional databases are actually minimal or none when it comes to blockchain technology.
This is because for a hacker to work around a particular block in a blockchain, it would be required of the hacker to infiltrate not only that specific block but also penetrate all of the existing blocks, going back the entire history of that blockchain!
And unfortunately for the hacker, he would need to do the same on every ledger in the network simultaneously. Hence the ledger could be in millions.
During one TED talks in 2016, technology guru, Don Tapscott said; blockchain technology even though it is not social media, big data, robotics or Artificial Intelligence, it has been great and will likely create huge impact in the next few decades.
It is the backbone technology behind digital currencies like Bitcoin.
During a presentation at Toronto in 2016, the Canadian business executive and consultant, Don Tapscott, was also of the opinion that the blockchain technology would be driving a fundamental shift from accessing the internet as a place to get information and communicate, to a place of value where assets can be instantly exchanged.
When this happens investors would no longer be at the mercy of intermediaries. Rather their assets would be secured through the use of consensus model and complex computer codes.
So, what Blockchain aims to do essentially is bring global economy to a point where every digi-conscious individual benefits from and is able to contribute to it.
This revolutionary tech has so caught the attention of the economically conscious, and it is beginning to get endorsement for national economies.
Conclusively, all the move, recognition and accolades the technology is garnering since its evolution, especially lately, are signs that the ride to being a global solution isn’t so far now?