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15 Things You Didn’t Know About Blockchain

5 December 2020

Almost All of Us Who Understand Crypto Link Blockchain to Bitcoin. But Here Are 15 Things That Uncover Its Reality.

Welcome back Aluxers! Blockchain is changing the world as we speak. Hailed the “fifth evolution” of computing, blockchains are in its most basic form, the most accurate database you can imagine.

It’s considered to have a value 10 times higher than the internet and it’s not that difficult to understand. A user requests a transaction, which is transmitted to the network. The request is validated. If successful, it gets added to the current block of transactions, which is chained to older transactions and finally confirmed. The record of transactions from day dot is meticulously kept. If the transaction is not valid, it’s declined.

Don’t make the mistake of thinking blockchain and Bitcoin are the same thing. Bitcoin uses blockchain technology to work and be effective.

Let’s delve into 15 of many things you didn’t know about blockchain.

Reading about Blockchain might not be as interesting as watching a fun YouTube upload about it. Here’s the video version of this article:

With that on display, let’s spring right back into the article.

1

Satoshi Nakamoto, the Inventor of Bitcoin, Is Not the Inventor of Blockchain

There is a common misconception that the inventor of Bitcoin is also the inventor of Blockchain, but as we mentioned in our video, 15 Ways Blockchain is changing the world, blockchain goes further back then when Nakamoto jumped on-board.

The idea of blockchain technology was first described in 1991 by Stuart Haber and W. Scott Stornetta, who introduced an easy computer solution to time-stamp digital documents to avoid them being tampered with.

It wasn’t until 2008 that Satoshi Nakamoto became synonymous with blockchain technology.

2

Blockchain Is the Best Bookkeeper That’s Ever Been Created

Aluxers, when you think of what blockchain really is – a data structure enabling one to create a digital ledger of data that one can share among a network of independent parties, you can fully grasp the concept of it being the most reliable and efficient bookkeeper.

Nothing can get lost in translation, or misinterpreted. As we described the process in our intro, if something doesn’t add up in the transaction requests, the request is denied. So, everything that is inputted, needs to be 100% accurate.

The beauty about blockchain is that everything is 100% transparent, creating a paperless environment that stores records of everything, from assets, liabilities, cash flow, and reconciliation.

‘Cooking the books’ will just not happen anymore when blockchain technology is in place.

3

Blockchain Is Being Used to Create Digital Ids for People

In many countries, getting an official ID for yourself can be a challenge. Those living in rural areas often don’t have the means to get to an official ID registration office. Many are too poor to afford one while some are lost in natural disasters.

There are many reasons, and they lead to roughly 1.1 billion people unable to identify themselves. Despite that, over 60% of those people do have a mobile device and access to some form of internet.

Digital IDs will no doubt benefit and protect people online, but it’s an option for many who can’t prove who they are through lack of proper identification. When they do finally have an official digital identity, they would be able to open a bank account, or become a property owner. Without an ID, you are not an official person and blockchain can change that.

4

Luxury Brands Love Blockchain

Aluxers, blockchain is going to change the way luxury brands do business. For a start, you’d be able to create a digital identity for your valuables and prove that you are the legitimate owner of the items. It will also help to curb the booming counterfeit industry and will reduce payment risks online.

Moët Hennessy Louis Vuitton, or LVMH, developed a project called AURA. This uses blockchain to ensure that fashion and luxury goods are authenticated. This would make them the first luxury goods group to use the technology to combat counterfeits.

They’ve partnered with ConsenSys and Microsoft to launch AURA, which uses Ethereum blockchain technology to track and trace services. With this service, customers can track and trace the history of the product, right from where and how the raw materials were sourced, all the way to the sale.

Same principle applies for De Beers, the world’s leading diamond company, who are using blockchain technology to authenticate diamonds. Customers can also keep track of the journey the diamond has taken, from the mine to the purchase, ensuring that everything is above board with the purchase of their forever diamond.

5

Blockchain Is the Future of Storing Value

Cryptocurrencies are powered by blockchain, breaking away from the need to depend on banks, and away from the influence of governments.

In its basic form, it gives you more control over your own money.

As Forbes writes, blockchain is a “single version of the truth but no single point of failure. Change one block and you’d need to change every subsequent block before new blocks could be mined.” So, if anything stored is captured with even the slightest error, blockchain picks it up and doesn’t accept it, leaving no room for mistakes or fraudulent behaviour, making storing value on blockchain the future.

6

Less Than 1% of the Population Currently Uses Blockchain

Don’t let that figure deceive you, because it’s going to skyrocket as it becomes mainstream and infused into technologies where you don’t even realize it’s blockchain.

In the medical field, blockchain will transform how we visit the doctors with a record of every single visit, medication, and diagnosis available to any doctor with the click of a button.

Blockchain will cut out the middleman, saving us unnecessary costs. It will help keep our valuables safe, provide ways for everyone to invest in property, to be identified, improve cyber security, protect intellectual copyright and an absolute bonus which we’ll share next.

7

Blockchain Leaves Corruption With Nowhere to Hide

There are very few governments where corruption does not exist, but with blockchain – that will be a thing of the past. Because of its transparency, governments will no longer be able to funnel funds.

It’s this transparency that is one of the biggest promises that blockchain technology gives its customers. Blockchain can provide a fully auditable and a legitimate ledger of transactions.

The way that blockchain stores the information is tamperproof. If information doesn’t add up, the technology will not accept it. It’s much harder to hide things using blockchain.

Each transaction made is irrevocable, and the transaction has an exact history of who and when it was done. Consumers can potentially track anything across the supply chain, from banking transactions, to charitable donations and even tracking where your food comes from!

When it comes to governments, using blockchain technology will make government accountable for their spending – leaving no room for doubt, ambiguity, or concern about where the funds are used.

8

Blockchain Will Facilitate the Internet of Things Revolution

The Internet of Things, or IoT, refers to every single device world-wide that is connected to the internet or uses advanced technology, and there are billions of them! It’s not just mobile phones and computers but things as small as a pill or as large as an aeroplane. They all form part of IoT.

So, by definition – the IoT is distributed to consumers and therefor blockchain becomes an online ledger for where the technology is, how it communicates with each other, and how they are handled.

Blockchain and IoT will shift how all things digital functions, from smart buildings to the energy industry, from manufacturing to security and everything in between.

9

Decentralized Autonomous Companies & Smart Contracts Will Be the Norm

Blockchain will revolutionise the way that companies operate.  Decentralized autonomous organizations will become the norm. A good example of one such company now, is Digix.global along with the cryptocurrency, Dash.

The rules of the company, like any decentralized autonomous companies or DAC – are all enforced digitally.

Shareholders or directors, own a certain amount of token or smart contracts, can then vote on decisions.

Rules are pre-programmed to describe what can take place in the system, with some being hard-coded, and cannot be altered. For example, a set amount for a pay out to a particular person can not be changed, so someone can’t pay themselves more without it alerting the system or refusing the pay-out.

However, decisions like paying for a contract, can be made – but all token holders must cast their votes to let that go through.

Everyone in the company is in the loop of decisions that are being made, leaving no room for dishonesty and fraud.

10

Experts Think the Price of Bitcoin Will Hit 100k in the Next 24 Months

However, Aluxers, they project bigger and better still, and that bitcoin will hit 1 million in this decade… and that’s per unit!

Don’t let that large amount fool you into thinking you can never afford to buy bitcoin, because as we mentioned in our video, 10 Biggest Misconceptions About Bitcoin, “it’s not like a dollar with only 100 cents in it, it can be divided into as many as one hundred million pieces. Meaning that you can own a fraction of Bitcoin with only a small investment. You can also sell, pay, and send these small bits and pieces of Bitcoin.”

And Aluxers, regardless if you’re interested in investing serious cash into bitcoin or just want to dabble a little with this new technology, the first thing you need to do is to get educated.

And we got you covered.
We just launched our Bitcoin Essentials course last sunday. It’s the perfect course for those who want to get into bitcoin and blockchain but don’t know where to start.
We cover the essentials and get you to speed in the most efficient way we know.

No bullshit, no unnecessary complications.

Got to alux.com/bitcoin and enroll now.

11

Blockchain Could Make Election Fraud a Thing of the Past

If the election count in the USA is anything to go by, then we hope that blockchain will be utilized sooner rather than later. Accusations of voter fraud and miscounting are still doing the rounds, and when re-counts were done, the results did change but not in favour of the exiting president, who made the claims. Trump was quoted as saying, ‘It’s statistically impossible that I lost.’ Blockchain would change that.

With blockchain technology, there is little room for error, and elections could be run with legitimacy and veracity. Voters could vote from their electronic devices, using verified log-in details, with additional authentication factors if needed, such as fingerprints or eye recognition.

12

The Global Crypto Market Is Worth Over 500 Billion Dollars

The price of bitcoin fluctuates a lot, based on speculation and hype from people who don’t really understand how it works. If you remember, just a few years back, people sold their houses to buy bitcoin at 20k.

But regardless of the speculative hype, the global crypto market is seeing a cap of $574 Billion as of writing this article.

And as you might have guessed it, Bitcoin is the big chunk, with a cap of 358 Billion.
If you go to coinmarketcap.com, you can track the charts in real time.

So the blockchain technology is not going anywhere.

Sounds crazy? This is just the beginning. The world is shifting gears and here’s are 15 Reasons Why Crypto is Gold 2.0.

13

A Blockchain Node Is Orbiting the Earth

SpaceChain launched a crypto wallet into the stratosphere on-board the Falcon 9 rocket at the end of 2019. Weighing just 1kg, the node was officially the first active bitcoin node at the International Space Station.

SpaceChain are working on creating a robust decentralized blockchain infrastructure in the stratosphere, making it beyond the jurisdiction of any country and immune to hacking.

Zee Zheng, SpaceChain’s CEO and co-founder said “We see so many crypto exchanges get hacked. And within two minutes the funds – millions of dollars – get transferred. By utilizing this channel, we can not only secure transactions, but have a chance to intercept suspicious.” (ones)

14

In Developed Countries You Can Pay Your Taxes via Bitcoin and Other Cryptocurrencies

Places like Switzerland or Estonia are using blockchain technology to allow people to pay their taxes using Bitcoin.

Just a few weeks ago, Switzerland’s Canton of Zug confirmed that from 2021, they would start accepting cryptocurrency for tax payments. Their new tax season begins February, which is when this new payment method will take effect.

Coming up soon, there’s a micronation that you can move to, where the official currency is bitcoin, but first, let’s head to Mars.

15

Money on Mars Will Be on Blockchain Instead of Paper

It would be a bit difficult to grab your wallet and hand over a few dollar bills if you’re living on Mars, so the answer to that is obviously blockchain.

Because Mars is so far away, the one area of concern is that the transactions might take too long, so for Mars a “Marscoin,” could be created. The “Marscoin” transaction could then be settled using Bitcoins blockchain, making Bitcoin the first official universal currency.

Question:

Aluxers, where do you think blockchain technology is needed the most? And how do you believe it will benefit us in the long run?