Introducing blockchain
The whitepaper released by Bitcoin's founder or a group of founders called Satoshi Nakamoto, in 2008, described Bitcoin as a purely peer-to-peer version of electronic cash. Blockchain was introduced along with Bitcoin. During the initial stages, blockchain was only used with Bitcoin for Bitcoin-based financial transactions.
Blockchain not only restricts financial transactions in Bitcoin, but in general any transaction between two parties that is maintained by the open, decentralized ledger. Most importantly, this underlying technology can be separated and can have other applications create a surge in the number of experiments and projects surrounding the same.
Numerous projects inspired by blockchain started, such as Ethereum, Hyperledger, and so on, along with currencies such as Litecoin, Namecoin, Swiftcoin, and so on.
Blockchain at its core is a distributed and decentralized open ledger that is cryptographically managed and updated various consensus protocols and agreements among its peers. People can exchange values using transactions without any third party being involved, and the power of maintaining the ledger is distributed among all the participants of the blockchain or the node of the blockchain, making it a truly distributed and decentralized system.
Some of the industry verticals using blockchain are as follows:
- Cryptocurrency: Bitcoin is the prime example of this. Apart from this, there are various alternative cryptocurrencies, such as Ethereum, Litecoin, Peercoin, and so on.
- Cybersecurity: There are various companies and projects harnessing the distributed nature of blockchain to create special authentication protocols for mass usage.
- Healthcare: Scalability is one of the best catalysts of blockchain; a lot of projects are securely storing data and using analytics to come to the perfect solution. Providing decentralized patient records and authentication is already being used at various facilities.
- Financial services: A lot of insurance and financial institutions are using blockchain to maintain the vast bank data, such as financial records, ledgers, guarantees, bonds, and so on.
- Manufacturing: Supply chain, prototyping and proof-of-concept, along with the tracking and tracing of goods is utilizing blockchain at the best efficiency.
- Governance: A lot of governments are racing toward becoming the world's first blockchain-powered state. Blockchains are being used across most government departments and not restricted only to public safety, transport, health, and shipping.
- Retail: A lot of startups and projects are aiming to introduce open no-middle man-based ecosystems; some are working on loyalty systems and blockchain-derived gift card systems.
- Media: Record labels can use blockchains to keep their ownership network and intellectual property rights secure.
- Travel: Projects are being worked on to introduce and revolutionize vehicle leasing, ride sharing, and other travel-related queries.
- Legal: Blockchain can bring transparency and solve the scaling issues in the ever-complex legal systems that are in place.
Furthermore, we will be discussing various other elements of blockchain and what other problems blockchain can solve.