How Blockchain is Revolutionizing Industries and Transforming the Future

 

I noticed that many of us don't seem to have a sound understanding of blockchain and its associated technologies. As a programmer in the financial tech sector, I must admit that my knowledge of blockchain and crypto was only superficial. We could all name bitcoin and NFTs, but most people aren't well informed about the reasons why blockchain is an essential tech trend. That's why this article is being written to explain what makes blockchain so important and why YOU should look into it beyond digital currencies and non-fungible tokens.

Blockchain is like a Global Computer

Think of it this way: your computer is not connected to the internet. Let's assume you have no Wi-Fi/internet connection, but you might have preinstalled applications like games and Microsoft Word, as well as other essential documents. Unless somebody else is signed in on your device, you are the sole user with all of the information stored only on your PC, nowhere else.

When you log into Web2, your computer is connected to a server that stores all of your user info and data. These are linked to a database which is controlled by a central entity with access to your information. This authority can do whatever they want with your data, which might be sold without your consent across the web. In addition, any outsider capable of hacking it has the power to modify your data stored online. Large cases of this have been seen in banks and various applications leading to huge financial losses due to security vulnerabilities (I would highly advise you look into common OWASP vulnerabilities if you want to learn more about this).

Another problem is that the info in these databases may not even be "real". Using the banks as an example, what happens if the economy takes a downturn, and the institution isn't able to give you your money back when you ask for it? The data in such a situation definitely won't be dependable or trustworthy. We've seen this kind of thing happen before, like during the time of the Great Depression, when bank customers hurried to close their accounts in fear; or in China, where entire villages experienced bank runs; or in San Francisco with the First Republic Bank collapse.

So, what blockchain does is it solves an essential problem in the system: trust. Blockchain is like a worldwide computer because you have an account and communicate with a blockchain node instead of a webserver. It is different from the latter in that it has multiple nodes, each with a copy of your user information. What also sets it apart is that a single account connects to the entire system, as compared to Web2.0, which requires multiple accounts for services such as Facebook, Instagram, Wells Fargo, Discord, etc. In contrast, Web3.0 only needs one.

It's important to point out that blockchain technology is a distributed database with information spread across multiple nodes. Every node functions as its own computer, running programs tailored for data sharing. Indeed, all transactions done on the blockchain are documented in the network's history and can be seen by anyone—assuming they have access to the right wallet. To ensure safety and security when handling digital assets, users must connect to an authorized node through their blockchain wallet. Different networks and wallets may require specific methods to make this connection.

After these transactions have occurred, the algorithm for the consensus mechanism is set into motion to authenticate the transaction. This means that various nodes interact with each other to confirm the data in the transaction simultaneously. Your data's authenticity is guaranteed by this process instead of relying on just one node to store your transaction details. After consensus has been attained, and the transaction validated, you can observe your updated transaction/information, whether it's receiving cryptocurrency, a change in balances, or some interaction with a decentralized application (DApps).

So, why is this important to know?

The demand for blockchain developers is on the rise, and it's no surprise as to why. The primary factor driving the need for blockchain developers is the increasing number of blockchain applications being developed. This means more projects are available to those who have a strong understanding of the technology and can develop, code, and deploy applications on it.

Additionally, companies that are utilizing blockchain technology want experienced professionals as this technology is still relatively new and complex in comparison to other database technologies. With that being said, now is the perfect time for you to brush up those coding skills if you’re looking for a job in this field.

Moreover, it’s important to remember that the development process for a blockchain application is unlike any other tech stack because of its unique components and features. You must understand consensus mechanisms, smart contracts, hash algorithms, data structures, authentication protocols, and cryptography. All these elements are not part of a traditional tech stack but essential when working with a blockchain-based application.

Finally, having an understanding of existing applications can help you get ahead in the industry. Learning about different projects or initiatives can help give your resume a boost when employers are reviewing potential candidates. You may also be able to score potential jobs by showcasing your experience with existing projects or initiatives within the space.

So, if you understand blockchain concepts, now is the perfect time for you to get involved in this rapidly expanding industry. With the right skills, you may even become the next great tech mogul and make a fortune by investing in new technologies while they are still fresh.