Invest in Blockchain Startup Companies

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Blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as “completed” blocks are added to it with a new set of recordings.

Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Focus and Goals

The focus of blockchain technology is to create a more secure and efficient way of handling transactions. The goals are to provide transparency, reduce costs, and increase efficiency.

Blockchain’s History and Applications

An anonymous person or group of people under the name Satoshi Nakamoto first conceptualized the blockchain in 2008. The goal was to create a digital currency that didn’t rely on any central authority, like banks.

In 2009, Bitcoin was released as the first decentralized cryptocurrency and blockchain technology. Blockchain allowed for secure transactions between two parties without the need for a third party to verify them. This made it ideal for creating a digital currency that could be used anonymously and without fees.

As interest in Bitcoin grew, so did interest in blockchain technology. In 2015, IBM announced it was working on a project called “Blockchain-as-a-Service” (BaaS), which would allow businesses to use blockchain technology without having to develop it themselves. This led to an increase in businesses experimenting with blockchains and cryptocurrencies.

In 2017, the value of Bitcoin and other cryptocurrencies skyrocketed, leading to a surge in interest in blockchain technology. In addition, several large companies announced they were working on their own blockchains, including Walmart, Microsoft, and J.P. Morgan Chase.

Today, blockchain is being used for a variety of purposes beyond digital currencies. Some examples include:

  • Tracking shipments and ensuring product authenticity
  • Securing patient data in the healthcare industry
  • Managing digital identities

Potential and Value

The blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as “completed” blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

The potential behind blockchain technology is huge because it allows for secure, transparent and tamper-proof transactions without any third party involvement – which could potentially disrupt many industries in the future such as banking, healthcare or real estate.

Innovations, Products, Technologies and Trends

The blockchain is a distributed database that allows for secure, transparent and tamper-proof transactions. The technology has the potential to revolutionize many industries by eliminating the need for third-party intermediaries. Here are some of the products, technologies, trends and innovations associated with blockchain:

  • Cryptocurrencies – Bitcoin was the first cryptocurrency to be created using blockchain technology in 2009. Since then, hundreds of other cryptocurrencies have been launched, including Ethereum, Litecoin and Ripple. Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units.
  • Smart Contracts – A smart contract is a computer protocol intended to digitally facilitate, verify or enforce the negotiation or performance of a contract. Smart contracts allow parties involved in a transaction to agree on terms and conditions without having to rely on third-party intermediaries such as lawyers or notaries public.
  • Decentralized Applications (DApps) – DApps are applications that run on decentralized networks such as blockchains instead of centralized servers controlled by single entities like Google or Facebook. DApps can provide more security and transparency than traditional applications because they are not subject to any one party’s control. Some popular examples include EtherDelta, BitShares, Steemitand LBRY Credits.
  • Blockchain-as-a-Service (BaaS) – BaaS is a cloud computing service that provides blockchain technology to businesses and organizations. BaaS allows companies to experiment with blockchain without having to invest in the infrastructure or hire developers themselves. Some of the most popular BaaS providers include Microsoft Azure, IBM Bluemix, and Amazon Web Services (AWS).
  • The Internet of Things – The Internet of Things (IoT) is a network of physical objects such as vehicles, appliances and buildings that are connected to the Internet and can communicate with each other autonomously. IoT devices can use blockchain technology to securely store data about their operations or interactions with other devices. This could allow for more efficient tracking and management of IoT networks.

A New Paradigm for the Banking and Financial Services Industry

While blockchain technology is still in its nascent stage, it has a lot of potential to grow. The following are some of the areas in which the blockchain technology can be used:

  • Banking and financial services – The blockchain technology can be used for services such as payments, clearing, and settlement. It can also be used for creating digital currencies and tokens.
  • Supply chain management – The technology can also be used for supply chain management to track the movement of goods from one point to another.
  • Healthcare – Healthcare applications such as electronic health records (EHR), drug tracking, medical billing, etc can utilize blockchain technology.
  • Retail industry – Retail applications such as inventory management, and customer loyalty programs, etc. also use blockchain technology.
  • Real estate – The blockchain technology can be used for real estate applications such as property registration, and title insurance, etc.
  • Government – Government applications such as voting, and land registries can also use blockchain technology.

Blockchain Technology’s Limitations

While there is great potential for growth in blockchain technology, the industry must overcome a number of difficulties and hurdles. These include:

  • Scalability – The current blockchain networks are not scalable enough to handle the increasing number of transactions. For example, Bitcoin can only process five to seven transactions per second, while Ethereum can only process 15 transactions per second. This is a major obstacle that needs to be addressed for wider adoption of blockchain technology.
  • Security – Blockchain networks are secure but they are also vulnerable to hacking attacks. For example, in January 2018, $534 million worth of cryptocurrency was stolen from Coincheck, a Japanese cryptocurrency exchange platform. So security is still an issue that desperately needs immediate attention before widespread adoption takes place.
  • Interoperability – Currently there is no standard protocol for blockchains to interact with each other which limits their interoperability potential. If different blockchains cannot communicate with each other it will then be difficult for them to work together as a whole system. This could limit the overall effectiveness and usefulness of blockchain technology.
  • Government Interference – Blockchain and cryptocurrency’s principal attractiveness is that it is a way for people to conduct business and exchange without the need for third parties - be they banks or governmental institutions. As stock markets fluctuate and government-issued bonds and currencies experience looser stability (and in some cases credibility), several global governments seem to be investigating ways to create federal digital currencies – Central Bank Digital Currency (CBDC) as a way of undermining the burgeoning crypto market.

Impact on Other Industries

Blockchain technology is still in its early developmental stages and it has not – to-date –been fully explored. However, there are some sectors that have already felt the impact of this new technology, including some of the following:

  • Banking sector – The banking sector is one that Blockchain has most affected. This is because Bitcoin, which is a cryptocurrency that uses Blockchain technology, was created to challenge traditional banking systems. Some banks have started to adopt Bitcoin and other cryptocurrencies into their systems. For example, in 2017, JPMorgan Chase announced that they would start using Ethereum’s blockchain network to process payments faster.
  • Government sector – Blockchain technology has also impacted the government sector. In particular, voting systems have seen a major change due to blockchain-based platforms such as Follow My Vote and Votem. These platforms allow people to vote online securely and without any fraud or manipulation.
  • Healthcare sector – In 2017, the startup company Gem partnered with Philips to create a blockchain-based platform that would allow patients to control their own health data. This would give patients more power over their own medical records and it would also help reduce the chances of data breaches.
  • Retail sector – Blockchain technology has also affected this sector and continues to do so. One example is the online retailer Overstock, which started accepting Bitcoin payments as early as 2014. Other retailers such as Microsoft and Subway have also started to accept Bitcoin payments.

A Secure, Decentralized Data Storage and Sharing System Future

Blockchain technology’s future is filled with potential and could evolve to a point where it can be used for more than just financial transactions. It will be used to securely store and share data between parties, without the need for a third party or middleman. This will revolutionize many industries, including healthcare, transportation, and manufacturing; all with the proviso that the legitimate concerns over security can are adequately addressed.