When we embark on the crypto journey, one of the words we most encounter is: blockchain. And because it is a new term many of us do not know exactly what it is. But we know that there is a great potential for change in it. What kind of changes can happen in our daily lives once the blockchain technology is implemented in other sectors?
To understand the changes first we have to ask: Why do we need Blockchain? Franklyn Richards, director of Litecoin foundation answered this question for us in the video Blockchain: Killer apps. I then sumarize some of his points in the video and complement with my own thoughts of how blockchain implementation will effect our ordinary lives.
The blockchain itself is not very effective, it is slower than many features that already exist. This is due to the necessary consensus among all members of the network. People who are scattered around the world and who are part of a certain network have to join in and agree on the state of what is happening at the moment, at all times. The consensus itself is the magic of blockchain. If the network wants to implement some change in the code of the blockchain for example, the members have to join. And more importantly agree with the new direction of the blockchain. Once everyone agrees the change can then be implemented.
The result of this consensus is a distributed, unchanging, secure network. And also without a trusted entity behind. The blockchain itself is a way of decentralizing. But not everything should be decentralized. In many industries a simple database is more effective than using blockchain. But in others the blockchain really can bring great solutions that can change our daily life.
Some of these changes are already happening. One of them, tokenization, was made possible by the Dapps platform, such as Ethereum and EOS, which are increasingly popular.
Other applications for Bitcoin and Litecoin are now being developed with the invention of side chains. Solutions such as Lightning Network and Color Coins will also make it possible to use Bitcoin and Litecoin blockchain in a variety of ways. Without congesting the base layer of the blockchain.
Money is the biggest change of all since the invention of blockchain. The coins created in the blockchain were not issued by a government, or a centralized trust entity, but by the network. In addition the blockchain accounting is open to all. At the same time, the identity of each is protected. One of the greatest ways to rescue privacy and autonomy in today's world. Coins such as Bitcoin, Litecoin or Ethereum may also be un-marketed worldwide. All these advantages make digital money more and more attractive.
Identity protection is also an industry that tries to grow with the invention of blockchain. All solutions for identifications and identity systems that are used today are issued by governments, and centralized agencies. In case the blockchain can be implemented to rescue the privacy of the user. One suggestion given by Franklyn Richards, Director of the Litecoin Foundation, is the creation of a digital passport, which minimizes immigration bureaucracy and ensures verification security. And also, it reveals less information about the user. In everyday life for example, if someone would like to know if we are over 18 years, instead of having to reveal the date of birth, and other information available the digital passport for example would simply indicate valid. A simple validation system without having to reveal more information.
In the financial sector the possibilities of the blockchain are endless. The level of transparency provided by the blockchain will continue to facilitate the operation of banks, corporations and organizations. JPMorgan, for example, recently announced the creation of its JPM currency code and other banks will follow the same path. In daily life, global and regional transactions of high internal cost for banks are already being eliminated by the use of blockchain. Other features are also being developed and crypto currencies like Ripple, Stellar and others were created with the purpose of creating solutions for banks and corporations.
In the social sector, a variety of applications are being developed that will facilitate the sending of crypto coins, or rather, values. People will be able to send crypto coins by text message, and other social platforms and this can change how people will interact online. Donations for example could be made directly to the needy, payments will be direct and borderless, most importantly low cost for users. People who today do not have access to a little can finally have access to various features and various services online.
Concluding the changes we can expect in our daily lives will be many. After only 3 decades since the invention of the internet we can not imagine the world without it. The invention of the blockchain is very similar. Although the changes are gradual and almost imperceptible. Eventually, technology is part of our lives and when we wake up we are already living in another reality.
Article inspired by the video: Blockchain Killer Apps by Franklyn Richards (Litecoin Foundation Director)